PLN may directly select Paiton 3-4 developer
Tuesday, May 29 2007 - 01:39 AM WIB
State electricity firm PT PLN would appoint directly a contractor for the development of the Paiton 3-4 coal fired power plant, if the second tender fail to meet the requirement, Koran Tempo reported on Tuesday.
PLN’s generation and primary energy director Ali Herman Ibrahim said on Monday that the contractor would be appointed directly if only one bidder took part in the second tender.
“If the two tenders failed to meet the requirement, we (PLN) appoint (the contractor) the directly,” he said in Jakarta on Monday.
Earlier, PLN has retender the contract for the development of the 800 MW Paiton 3-4 coal fired power plant because only PT Paiton Energy submitted the bid.
PLN has put Jawa Power and Paiton Energy Company in beauty contest to find a developer for Paiton 3-4 power plant. Both Jawa Power and Paiton are currently operating 1,220-MW and 1,320-MW power plants, respectively, in Paiton power complex in Situbondo, East Java.
The new plant is expected to cost US$800 million and will come onstream in 2011. Jawa Power is controlled by German firm Siemens Ag, while Paiton is controlled by Japanese firm Mitsui. (*)