PLN to re-tender 21 IPP projects

State electricity firm PT Perusahaan Listrik Negara (PLN) has decided to re-tender 21 independent power producer (IPP) projects because the owners have serious problems to realize the projecs, Bisnis Indonesia reported on Wednesday.

There are a total of 46 IPP projects, which are facing problems ranging from inability to get financing and failure to secure lands. Of the 46, 21 are considered as having "the most serious problems" that PLN decided to retender the projects, PLN's president director Dahlan Iskan was quoted by the newspaper as saying on Tuesday.

"The (current owners of) the 21 projects will be allowed to participate in the new tender," he said.

Dahlan also said that he had established a negotiation team to deal with the owners of the other delayed IPP projects in order to find solutions to their problems.

The team was led by PLN?s director for business and risk management Murtaqi Syamsudin with members including officials from state comptroller BKPK and state owned investment fund Bahana Securities.

?With the establishment of the team, we hope all the problems could be settled this year,? he said. (*)