Suralaya operator to complete negotiations with coal bidders this week

Electricity firm PT Indonesia Power said Wednesday negotiations with the bidders for the tender of the contract to supply up to five million tons of coal per year to the 3,400-megawatt Suralaya power plant in Banten would be completed this week.

According to company operating director Achmad Sadikin, there are five companies that proposed bid prices lower than the company's price estimations.

The companies are PT Risna Karya, PT Natuna Energi, PT Kasih Industri, PT Central Korporindo, and PT Oktasan.

Indonesia Power has estimated the price for the coal at Rp 279,500 per ton with the calorific value of 5,100 Kcal/kg, Achmad said.

Achmad said Indonesia Power would carry out field (coal mines) verification next week.

After the approval of Indonesia Power?s commissioners, the contracts are expected to be awarded by end of October, Achmad said, adding that each winner would obligate to deliver one million tons of coal annually under a 3-year contract. (dino)