PLN to resume tender of four major power projects

State-owned oil and gas company Perusahaan Listrik Negara (PLN) has received a green light from Coordinating Minister of Economy Boediono to go ahead with the tender for the construction of four major power projects which has been halted since 2005 due to uncertainty regarding the government's guarantee, Kompas reported Friday.

The four power projects include the US$200 million coal- fired power plant (PLTU) Bali (2 x 100 MW), the US$200 million power plant Sumatra Utara ( 2 x 100 MW), the US$50 million coal-fired power plant Sulawesi Utara ( 2 x 25 MW) and the US$120 million combined cycle power plant (PLTGU) Kalimantan Timur ( 2 x 60 MW).

Energy and Mineral Resources Ministry's director general for electricity and energy J. Purwono said in Jakarta on Thursday that the tendering process of the four power plants should have waited for the completion of the tender of other two power projects including coal-fired plant Jawa Tengah and combined cycle power plant Pasuruan, which would be built under a public private partnership scheme projects.

Purwono said his office had instead asked the approval from the coordinating minister to continue with the stalled tender because it would be too long to wait for the completion of the two power plants.

The four power plants were offered to independent power producers in September 2005. As many as 38 bidders have passed the pre-qualification process which was later delayed due to uncertainty regarding the government's guarantee.

PLN Deputy Director Nasri Sebayang said that it would soon reopen the pre-qualification to continue the construction of the four power plants. (*)