PLN considers option to directly appoint contractors for Sumsel 9, 10 projects

State-owned electricity firm PT. PLN is currently discussing the possibility of directly appointing the contractors for the development of the South Sumatra (Sumsel) 9 and 10 coal-fired power plants with combined capacity of 1,800 MW, Kontan reported on Thursday.

The plan comes following protest from coal miners participating in the ongoing tender for the projects after PLN in December of last year revised the tender documents, dividing the participants into two clusters: one group comprising of producers of low calorific value coal (equal or less than3,000 kcal/kg), and another group consisting of producers of higher CV coal.

The paper quoted PLN Director of Planning and Risk Management Murtaqi Syamsuddin as saying that while the tender process is still ongoing, the company has started discussing the possibility of directly appointing the contractors following the recent issuance of Minister of Energy and Mineral Resources Regulation No 3/2015, which allows such direct appointment without tender mechanism in bid to accelerate the development of key power plant projects.

Meanwhile, Director General of Electricity Jarman said that for the selling price of electricity to be produced by the planned two mine-mouth power plants, the contractors would no longer have to negotiate with PLN as the selling price would follow the benchmark set in the Minister Regulation No 3/2015. (*)