PLN wants PPA for PLTGU Jawa-1 project to be signed soon
Thursday, January 19 2017 - 02:41 AM WIB
Petromindo
State-owned electricity firm PT PLN is seeking to quickly sign the power purchase agreement (PPA) of the planned 2x800 MW PLTGU Jawa-1 combined-cycle power plant project with the winning contractor, a consortium led by state-owned oil and gas firm PT Pertamina, as further delays could also postpone the completion of the key project.
PLN Procurement Director Supangkat Iwan Santoso said on Wednesday that the state utility has returned the draft of the PPA to Pertamina as the leader of the consortium for final review, and hopes it could be signed on Monday. ?We have sent the draft on Tuesday, and asked for the PPA to be signed on Monday, January 23, at the latest,? he told reporters.
He explained that the PPA was supposed to be signed in the middle of December of last year, but has been delayed due a couple of issues about the project including bankability and commercial technical aspect.
Supangkat added that according to tender regulation, if the Pertamina consortium fails to sign the PPA by the deadline, PLN holds the right to appoint the second bidder as the new EPC contractor for the project.
The Pertamina consortium was competing with two other consortiums during tender last year namely consortium of Mitsubishi, Jera Power Corp, PT Rukun Raharja, and PT Pembangkit Jawa Bali; and consortium of consortium of Sembcorp Utilities, and PT Adaro Energy Tbk.
Ginanjar, Head of the Pertamina-led consortium, said that the consortium was still in the process of reviewing once again the PPA document, and hopes to be able to reach an agreement at the expected deadline.
PLN announced on October 26 of last year a consortium comprising of Pertamina, Marubeni and Sojitz Corp as the winning bidder for the estimated US$2 billion power plant project. The PPA was supposed to be signed 45 days after the winning bidder has been announced so that the power plant can start commercial operation in 2019.
Sources, however, said that the Pertamina consortium was seeking to negotiate with PLN the terms and conditions of the project. But Supangkat said earlier that the terms and conditions, which have been disclosed during the tender, are non-negotiable. He added that the Pertamina consortium was selected as the winning bidder among others based on the request for proposal the consortium made during the tender, which include agreeing to the terms and conditions of the project.
Editing by Reiner Simanjuntak