Source: PLN to terminate Jawa-1 project
Monday, January 9 2017 - 06:58 AM WIB
Petromindo
State-owned electricity firm PT PLN is said to terminate the planned 1x1,600 MW PLTGU Jawa-1 combined-cycle power plant project, which has already been won by a consortium comprising of state-owned oil and gas firm PT Pertamina, Marubeni and Sojitz Corporation.
A source told Petromindo.com Monday that PLN is suspected to "turn facts upside down" and to report to President Joko Widodo that the Jawa-1 project will be terminated by arguing that the utility "fails to negotiate" with the consortium.
"After having been terminated, PLN will then appoint its subsidiary to run the project," the source said, pointing out that under the scenario, the PLN subsidiary will team up with IDX-listed PT Rukun Rahardja Tbk in the project.
PLN and Pertamina declined to comment.
According to info memo obtained by this portal, PLN in December of last year had already signed a letter of intent with the winning consortium for the Jawa-1 project.
PLN Procurement Director Supangkat Iwan Satoso said last week that the power purchase agreement (PPA) for the Jawa-1 project has yet to be signed as discussion over the terms of the contract has yet to becompleted. He said that the consortium proposed changes to the terms of the contract in December.
Editing by Reiner Simanjuntak