PLN delays retender for three coal-fired power projects until February

Monday, January 22 2007 - 01:25 AM WIB

State electricity firm PT Perusahaan Listrik Negara (PLN) said that the retender of three coal-fired 300 MW power plant projects rescheduled for Jan. 23 has been deayed until Feb. 14, Koran Tempo reported Monday.

The three projects are coal-fired power plant 3 Banten (Teluk Naga), coal-fired power plant 2 West Java (Pelabuhan Ratu) and coal-fired power plant 1 East Java (Pacitan).

?It (the retender) has been been delayed because they (the projects) have to get supporting documents from the banks,? PLN president director Eddie Widiono said over the weekend in Jakarta.

According to Eddie, there was a misunderstanding on the part of Chinese funding agency which thought that the government of Indonesia had not yet given a guarantee.

But during his recent visit to China, Eddie was assured by China's Vice Minister of Foreign Trade and Commerce that the government fully supports these projects and provides funding.

A Chinese delegation consisting of funding agencies and Chambers of Commerce and Industry was scheduled to arrive in Jakarta Sunday to settle funding problems.

Under the initial plan, the retender of the three power plants was scheduled for the middle of December, 2006 and was rescheduled for Jan. 23.

The three coal-fired power plants to be built under the government?s fast track program to provide additional power supply of 10,000 MW should be retendered because all bidders of the auction did not pass the technical evaluation, PLN said on Dec 1. (*)

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