PLN can go ahead with tender for 10,000 power plant projects: Jusuf Kalla
Saturday, October 7 2006 - 12:41 AM WIB
The Vice President said in Jakarta Friday that under the Presidential Regulation No. 71, Year 2006 on the fast track program, the decision to determine the winner of the auction can be made either through a tender or a direct appointment.
PLN has been given the authority to auction the construction of coal-fired power plants projects under the government?s fast tract program to provide additional power supply of 10,000 MW between 2007 and 2009.
?As long as it meets the requirements and it offers a good price, the tender can go ahead. The Presidential regulation says so,? he said.
PLN had decided to retender for eight power plant construction projects because the tender attracted less number of bidders. Of the eight projects, four attracted only less than three bidders and only one bidder in each of other four projects has met the requirement for offering guarantee.
Kalla also disclosed that President Susilo Bambang Yudhoyono had signed the Presidential Regulation on the government guarantee for the PLN Power Project.
With the existing legal umbrella, Finance Minister Sri Mulyani Indrawati can soon sign a Finance Ministerial Regulation on the guideline for the implementation of the government guarantee letter.
The prospective contractors eager to participate in the construction of coal-fired power plant construction projects are in doubt about PLN?s capability of paying the project due to the absence of the government guarantee.
Besides selecting contractors that will participate in the construction of the coal-fired power plants, PLN also opens tender for the coal supply.
Of the 15 companies that have passed the prequalification of the tender for coal supply, only six took part in the tender, with coal producer PT Arutmin Indonesia dominating the tender. (godang)