PLN tenders out 4 coal-fired power plants

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) is holding the tender for four coal-fired power plants totaling 700 MW, valued at about US$2 billion.

PLN?s Head of Procurement Division Monstar Panjaitan said the four plants were part of the six coal-fired power plants PLN would put to tender under the independent power producer (IPP) mechanism.

?All the six IPPs are using the BOOT (build-own-operate-transfer) scheme. All the projects are guaranteed by the government,? he said, adding that the winner had been selected for two of the four projects.

He did not elaborate further on the winners. Several private companies joining the tender including a consortium of PT Andora Energy Tbk and Korea East West Power Ltd for the development of 200 MW plant in South Kalimantan, Indika Group and PT Rekayasa.

PLN has yet to decide on the price, although Monstar said that it could be between US$0.06 per kWH and US$0.12 per kWH.

Separately, A. Santoso, chairman of the Indonesian Private Electricity Producers Association (APLSI), stressed the importance of government?s guarante on small-scale IPP projects to lure more investment and help the government?s electricity penetration target of 91% by 2015. (*)