Medco remains hopeful to win giant Jawa-1 power plant project
Tuesday, September 13 2016 - 12:48 PM WIB
Medco Power Generation Indonesia (MPGI), a subsidiary of IDX-listed integrated energy company PT Medco Energi Internasional Tbk, remains hopeful to be able to win tender of the giant 1,600 MW PLTGU Jawa-1 combined cycle power plant project, despite earlier signal from President Director of state-owned electricity firm PT PLN, Sofyan Basir that he preferred Japanese consortium to win the project.
MPGI has set up a consortium together with PT Medco Power Indonesia (also a subsidiary of Medco Energi), South Korea?s Kepco, and Qatar?s Nebras Power in bidding for the estimated US$2 billion power plant project. Three other consortiums also participated in the tender held by PLN, which is expected to announce the winning bidder next month.
MPG President Director Lukman Mahfoedz told Petromindo.com on Tuesday that the Medco consortium has the capacity to realize the power plant project.
He pointed out that the consortium will not face difficulties in getting funds for the project as Kepco and Nebras are international players with AA-rating. He added that Kepco has around 100 years of experience in developing power plant projects including nuclear power plant, with excellent technology capability. Meanwhile, Nebras is supported by Qatar Power Electric and Qatar Petroleum.
?The AA rating will (help) ensure that financial close (for the project) can be made on time. We?re also supported by funding from Korean lenders, ADB, IFC, and Islamic Development Bank,? Lukman said.
He added that in terms of land requirement, Medco had already signed an agreement in October of 2015 to acquire land in Bekasi, West Java, for the project. He said that this means if the Medco consortium is selected as the winning bidder, it could start construction process within six months as required by PLN, in the hope the project can be completed in 2019 as targeted by the government. ?Land acquisition is a critical factor in power plant project (in Indonesia),? he said.
Lukman made the statement after PLN?s Sofyan gave a signal on Friday that there?s possibility that the winning bidder for the Jawa-1 project will be a Japanese-led consortium. Sofyan said that he preferred Japanese consortium to help ensure ?balance? as many power plant projects in Java have been previously won by Chinese companies. ?The winning bidder has yet to be decided. There?s possibility for Japanese (consortium to win the project),? Sofyan said.
Aside from the Medco consortium, the three other consortiums participating in the Jawa-1 tender are: consortium comprising of Mitsubishi Corp and JERA (both from Japan), PT PJB (a subsidiary of PLN) and IDX-listed PT Rukun Raharja Tbk; consortium comprising of IDX-listed coal giant PT Adaro Energy Tbk and Singapore?s Sembcorp Utilities Pty Ltd.; and consortium of state-owned oil and gas firm PT Pertamina and Japan?s Marubeni Corp and Sojitz Corp.
Editing by Reiner Simanjuntak