Two business consortiums threaten to sue PLN

Two business consortiums ? Anhui Wenergy-PT Indomuda Satria Internusa and PT Graha Power Indonesia (GPI)-China National Electric Equipment Corporation ? threaten to take a legal action against state electricity company PLN for an alleged violation of business competition law in the tender of PLTU Kalsel-1, a large scale coal-fired power plant project worth about Rp 3.5 trillion.

Project development manager of PT Indomuda Satria Internusa, Raden Edi Sewandono, said that PLN as the tender committee had violated principles of fair business practices and transparency during the tender of the large power plant project.

He said the state electricity company did not consider net plant heat rate as the main indicator in evaluating the bidders during the tender process. Besides the administrative court, the two consortiums would sue PLN through the commission for supervision of business competition (KPPU) and the Corruption Court (KPK). Edi said as reported by Business Minggu weekly

In the tender, the consortium of Korea East West Power-Adaro Energy offered a higher heat rate of 100%:2.903 kilo calorie per kWh, while other consortiums, GPI and Anhui offered heat rate of 100%: 2.896 (kcal/kWh) and 100%: 2.730 (kcal/kWh).

?It means, PLN will buy electricity much more expensive if the power plant is operated by the consortium of Korea East West Power-PT Adaro Energy,? he said, adding that it could inflict financial loss of Rp l trillion to PLN.

The president director of PT Graha Power Indonesia Antonius Hanifah Komala has also sent a letter to PLN protesting the unfair practices conducted during the tender process of the PLTU Kalsel-1. (*)