PLN appoints Indonesia Power to develop Jawa-5 power project
Friday, September 2 2016 - 02:14 AM WIB
This was said by PLN President Director Sofyan Basir on Thursday. He said that Indonesia Power will select the EPC contractor for the US$3 billion project.
Sofyan, however, is unsure whether the power plant project can be completed by 2019 as initially targeted as it would depend on the performance of the contractor. He said that construction of the coal-fired power plant normally takes about four years to complete.
He said that the company will seek credit export facility to help finance the power plant project.
PLN directly appointed Indonesia Power to develop the project after in July cancelling a tender process, which had already entered the final stage, on grounds among others to speed up the project, which is part of the government?s target to develop a total of 35,000 MW power plants in five years until 2019.
A strong candidate to win the project was a consortium led by China Oceanwide with members including PJB and Shanghai Electric Power. PJB is a subsidiary of PLN.
PLN President Director Sofyan Basir said previously that the selection process of tender participants was not based on good governance principles. He added that PJB?s 10 percent stake in the consortium was lower than the 30 percent request made by PLN.
Earlier reports said that Oceanwide has sent a letter to President Joko Widodo appealing for the government not to cancel the tender process.
Editing by Reiner Simanjuntak