PJB may appoint Kideco sole long-term coal supplier for Paiton

PT. Pembangkitan Jawa Bali (PJB), a unit of state electricity firm PLN that runs Paiton power plant in Probolinggo, East Java may appoint East Kalimantan coal mining firm PT.Kideco Jaya Agung as sole supplier for its long-term coal requirement after the latest re-tender held by PJB only attracted one bidder.

Tender Committee Official Harry Purnomo told Petromindo.Com on Monday that PJB would ask Kideco to submit pricing proposal next week to allow both parties to negotiate price.

?If negotiation fails, PJB will hold another re-tender,? he said.

Paiton had invited on September a number of Coal Contract of Work (CCOW) miners to participate in the re-tender to supply coal with CV of 4,800 Kcal/kg and 5,100Kcal/kg. Kideco is the only company interested to supply coal with CV of 4,800kcal/kg, while higher CV re-tender drew no bidder, Tender Committee Chairman Amin Laila said.

According to re-render announcement, winners will supply 40,000 tonnes per month of 4,800kcal/kg coal and 60,000 tonnes per month of 5,100kcal/kg coal to Paiton from 2009 to 2014.

Amin said PJB has no plan to immediately issue re-tender for 5,100kcal/kg coal as it still has outstanding contract with South Kalimantan coal miner PT.Adaro Indonesia, which would expire in 2009. (denny)