Re-negotiation for Kediri GITET only 30 days
Thursday, February 1 2001 - 04:30 AM WIB
The government gives only 30-day time to state electricity company PT PLN to re-negotiate the value of the allegedly marked-up high voltage electricity relay station (GITET) in Kediri, East Java, with the winner of the project.
If that fails, PLN would then be given a three-month time to complete an open tender of the Kediri GITET project to all contractors interested in the project, according to the director general of electricity and energy development at the Ministry of Energy and Mineral Resources, Endro Utomo Notodisuryo.
"We give one month time to PLN to re-negotiate the value of the Kediri GITET lot III project so that its value will be comparable with the DEPOK III GITET project," Endro said, referring to similar project in Depok, West Java.
PLN and the government has postponed the construction of the Kediri relay station following allegations that the project value was highly marked up, compared to similar project to be built in Depok, West Java.
The Kediri project has been awarded to a consortium of PT Pembangunan Perumahan and PT Indokomas Buana Perkasa-Alsthom T&D, with financing supports from BNP Paribas-Credit Agricole Indosuez of France.
The value of the contract for Kediri project is US$35.94 million and Rp 17.51 billion, or in rupiah, the total cost would be Rp 342.28 billion. This value is 250 percent more expensive that the value of similar project in Depok, West Java, that would be built by a consortium of PT
Multifab-Mitsubishi Electric-GEC Alsthom, with a total cost of US$410,000 dollar, plus Rp 20 billion and 1.366 million Japanese yen, or in rupiah Rp 136.7 billion.
The contract for Kediri was signed in 1998 when PLN was led by Djiteng Marsudi. In the same year, PLN also signed a contract with investors for another relay station in Tasikmalaya, West Java, whose value was also far higher than the Depok project that was tendered in the middle of this year. (*)