PLN denies marking up price of Borang turbine generators
Wednesday, January 18 2006 - 04:52 AM WIB
Based on the calculation, the price of the generators called Truck Mounted (TM) 2500 accounted for 67 percent of the price of new ones because PLN paid for them in 4 yearly installments, the company's president director Eddie Widiono was quoted by Antara news agency as saying.
"It is not true that we bought secondhand generators at new price because we pay for them in 4 yearly installments," he said.
However, he added, that PLN would fully leave the alleged mark up to the police to investigate.
"We are ready to be investigated. We are ready to take responsibility," he said.
He maintained that the purchase of the generators followed the standing procedure.
The free on board (FOB) price of two new gas turbine generators currently ranged from US$24 million to US$30 million, while PLN paid US$29 million for the generators in 4 yearly installments, he said.
He said PLN bought the generators quickly not only to deal with power shortages in southern parts of Sumatra island but also to retrench fuel oil.
"On the other hand, it is impossible to remove gas turbine generators from Pulo Gadung power plant (to Borang)," he said.
PLN bought the generators on installments because it faced funding difficulties, he said.
Therefore, PLN invited PT Guna Cipta Mandiri to buy the generators, he said.
The police has recently arrested a deputy director at PLN Agus Darnadi for his alleged involvement in corruption in the purchase of the generating sets. (*)