Pulang Pisau coal-fired power plant to be re-tendered

State owned electricity company PT Perusahaan Listrik Negara (PLN) will retender the 2 x 60 MW Pulang Pisau coal-fired power project in Central Kalimantan because the previous tender winner had failed to carry out the project.

Yulian Taruna, the province's mining and energy head, was quoted by Antara as saying on Wednesday that the provincial administration had been informed by PLN that the retender would be held in 2010.

Earlier, Central Kalimantan governor Agustin Teras Narang said that the project, which is part of the government?s fast track 10,000 MW power project had failed.

?Since the plan was made about one and a half year ago, only a small hut has so far been built in the 64-hectare area allocated for the power project,? he said on June 2009.

A consortium of China National Heavy Machinery Corporation (CHMC)-Shandong Electric Power Construction No 1 Company (SEPCO-1) and local company PT Mega Power Mandiri won the tender to build the power plant in early 2008. However, the consortium had failed to meet construction schedules due to financial difficulties.

PLN deputy for procurement Setiawan said in June that the consortium had failed to carry out the project because their bid for the power plant was under the market value.(*)