PLN asked to retender three coal-fired power projects

Tuesday, January 16 2007 - 02:08 AM WIB

Vice President Jusuf Kalla has asked state-owned electricity company PT PLN to retender three coal-fired power projects in Java because the potential winners of the projects are unable to secure the funding for the power plants.

The three power projects include Labuhan coal-fired power plant, which will have a capacity of 2 x 300 MW, Indramayu coal-fired power plant with capacity of 3 x 300 MW and Awar Awar coal-fired power plant with capacity of 2 x 300 MW.

Consortium China National Machinery Industry Corp - Sinomach - PT Penta Adi Samudra was the only consortium left in tender for Tanjung Awar Awar power plant, Indramayu power plant and consortium Chengda Engineering Corp -Truba Jurong Engineering were the potential winners to build Labuhan power plant.

"Chinese chamber of commerce had refused to issue recommendation along before they joined the tender," he said, adding that the Chinese consortium such as CNTIC and Harbin, received the backing of the Chinese chamber of commerce because they were the only Chinese companies taking part in the tender for the construction of power plants with a capacity of 600 MW.

In Dec 2006, PLN had completed technical valuations over and clarified financial documents submitted by bidders for the Labuhan, Tanjung Awar-Awar and Indramayu power plants, which each has a planned capacity of 300 MW. The projects, which are part of the 10,000 MW project, were also retendered after the first tendering process failed to attract at least three bidders.

In the retendering process, each of the three power plant projects attracted more than three bidders, but only one bidder in each project pledged a bank guarantee.

PLN expected to sign contracts with the winners of the Labuhan, Tanjung Awar-Awar and Indramayu projects in February next year. (Godang)

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