Original investors to resume Tanjung Jati A and Serang power projects

The original investors of two giant steam power projects PLTU Tanjung Jati A and PLTU Serang have been allowed to resume their projects on the condition that they submit new bids, Bisnis Indonesia reported on Monday.

"The two power projects will be given to their previous investors. There will be no tender involved, but the two companies should meet the criteria (imposed by PLN)," state electricity company PLN's power generation and prime energy, Ali Herman Ibrahim, said in Jakarta on Saturday.

The construction of the Tanjung Jati A power plant was originally given to a company called PT Tanjung Jati A, while PLTU Serang was given to PT Power Jawa Barat.

The requirements that should be made by the two original investors among others were good standard of quality, low prices and attractive financing schemes, Herman said, adding that the two investors should be able to offer the selling price as low as possible to be able to be involved in the two giant projects.

PLTU Tanjung Jati A, with a capacity of 2 x 660 MW will need investment of at least US$1.66 billion, while PLTU Serang, with a capacity of 330 MW, will require investment of at least US$850 million.

The two projects were part of the 26 power projects suspended by the government in the wake of the late 1990s financial crisis. But last year the government decided to resume many of the projects, but have asked the investors to revise the initial contracts including a lower selling price for the power.(*)