Retender of controversial transmission project starts

The government has already started the retender of the controversial 1500 KV power transmission project connecting Klaten in Central Java and Tasikmalaya in West Java, according to president of state electricity firm PLN Kuntoro Mangkusubroto.

Kuntoro declined to disclose the names of the tender participants.

But he said that Bukaka was still welcome to join the retender.

The transmission project has become controversial after the government and PLN unilaterally cancelled its earlier decision to award Bukaka the project.

The government reasoned that Bukaka was not financially nor technically fit to develop the project.

Bukaka owner Jusuf Kalla accused President Abdurrahman Wahid was behind the decision. He also said that Abdurrahman wanted ABB to win the project.

Jusuf is the former trade and industry minister who was dismissed by Abdurrahman from the cabinet several months ago.

Separately, Achmad Kalla, president of Bukaka Teknik Utama was quoted by the Republika daily as saying that two Indonesian senior officials had apparently tried help ABB win the project.

Achmad said that Indonesian Bank Restructuring Agency (IBRA) chairman Cacuk Sudarijanto had initially tried to help Harold Jensen, who represents ABB, to meet Kuntoro but failed.

But Foreign Minister Alwi Shihab managed to help Jensen meet Kuntoro at a lunch.

Achmad quoted his source as saying that Kuntoro was very angry and abruptly left Jensen after the latter tried to pressure the former so that ABB wins the project.

Achmad also said that PLN had earlier rejected Alwi's proposal to allow ABB win because it would be against international tender procedure, and would also be objected by Japanese JBIC, the funding source of the project.

According to international tender procedure, the second winner, Hyundai, should be appointed after the first winner was canceled.

But Alwi said that JBIC should not be a concern, because Abdurrahman had talked with the Japanese Prime Minister.(*)