PLN: transmission project ex Bukaka may be transferred to ABB

State electricity company PT PLN has indicated that the company will award a 500 kilovolt transmission project linking Klaten in Yogyakarta to Rawalo Baru, Tasikmalaya and Depok in West Java to a consortium led Asea Brown Boveri (ABB) if PLN wins its legal battle against PT Bukaka Teknik Utama over the project.

PLN operational director Tunggono said that the planned appointment of ABB consortium was based on consideration that the consortium was actually the winner of the project tender based on the price ABB consortium offered.

"ABB Consortium offered a price that was 25 percent cheaper that that offered by Bukaka, that won the project tender. The re-tendering was participated by nine consortiums," Tunggono said.

ABB Consortium offered only US$56.25 million for the 309-kilometer project, compared to $75 million offered by Bukaka. But the government through PLN awarded the project to Bukaka. There were no clear reasons on why Bukaka won the project despite its higher prices.

But the new government under President Abdurrahman Wahid canceled the decision and contended that Bukaka did not financially and technically qualify for the project.

But Bukaka fought back and sued the government and PLN through the Jakarta Administrative Court.

Tunggono said that PLN was waiting the verdict from the Jakarta Administrative Court, that would likely be handed down later this week.

If the court sided with PLN, PLN would automatically awarded the project to ABB consortium.

"If we lost, we will report to the President ... If the government said we must appeal the decision, we will file an appeal," Tunggono said. (*)