PLN to sign PPA for C. Java power plant tender
Friday, March 4 2011 - 03:03 AM WIB
PLN director for planning and Strategy Nasri Sebayang said on Thursday that seven investors took part in the tender of the project which was now still underway.
?The tender was launched in early March. The power purchase agreement with the winner is expected to be signed within the next three months,? he added.
PLN had proposed four locations for the power plant which would have a capacity of 2 x 1,000 megawatt, he said, adding that the winner of the tender will pick one of the locations, he said without giving details.
Earlier, National Planning Agency BAPPENAS?s program management specialist Lukas Hutagalung told Petromindo.Com that consortiums of Mitsui-International Power and J-Power-Itochu-Adaro had asked for guarantee letters that provide wider coverage.
The Ministry of Finance has declined the request, he said, without providing details.
The government has issued a guarantee letter to investors willing to take part in the tender for the development of the project. Finance Minister Agus Martowardojo said in December last year that the letter would guarantee winner of the tender to obtain a license for the construction, to obtain lands, coal supply and to ensure that the government will buy the electricity.
?The guarantee is much broader than those provided for power plants developed under the first-track of 10,000 MW power plant development plan program,? he said, adding that the project will be guaranteed by the government, in cooperation with PT Penjaminan Infrastruktur Indonesia (PII).
The project will cost about US$3 billion to build as part of the public private partnership (PPP).
Seven foreign companies have passed the prequalification phase of the tender, that is 1) China Shenhua Energy Company Limited 2) CNTIC ? Guandong Yudean Consortium 3) GDF Suez - J Power Consortium 4) Korea Electric Power Company (KEPCO) 5) Marubeni Corporation 6) Mitsubishi Corporation 7) Mitsui-International Power Consortium. (*)