Tender of three power plant projects fail to gain interest from investors
Monday, January 23 2017 - 01:57 AM WIB
Petromindo
Three power plant projects offered to private investors via independent power producer (IPP) scheme during tenders held by state-owned electricity firm PT PLN last year failed to gain interest from investors, Koran Tempo reported on Monday.
?There were lack of interests. No bids were submitted during the tenders,? said PLN Procurement Director Supangkat Iwan Santoso.
The three projects include the 100 MW PLTG Kalimantan Barat 2 gas-fired peaker power plant project in Pontianak, 200 MW PLTG Riau gas-fired peaker power plant, and 50 MW PTLMG gas-engine power plant in Riau Islands, all of which had been included in the PLN 2016-2015 electricity procurement business plan (RUPTL).
Iwan said there were several possible reasons for the lack of interest from investors including the relatively small size of the projects and the absence of guarantee from PLN for the operation of the power plants as their status are peaker plants merely to support the reliability of the Sumatra electricity system, all of which boil down to less attractiveness of the economics of the projects.
He said that the tender failure consequently will delay the target of operation of the power plants, initially projected to be made in 2018.
Iwan added that PLN is considering other alternatives including taking over the projects and then appoint an EPC contractor, which will be included in the upcoming new 2017-2025 RUPTL. (*)