Two power projects through IPPs scheme must be re-tendered : PLN

Two of the six power projects through independent power producers (IPPs) scheme under the fast track program to generate 10,000 megawatts must change their fate as they are included into the 10 infrastructure project models, an official has said.

State electricity company PT Perusahaan Listrik Negara (PLN) financial director Parno Isworo said in Jakarta on Friday that the two projects have actually a fixed tender process but the tender process will have to be repeated from the beginning because these projects are included into 10 infrastructure project models offered at the Indonesia Infrastructure Conference and Exhibition (IICE) held recently.

?Yes, what else can we do, that's the request. A guarantee is needed," Parno Iwsworo was quoted as saying by Kompas on Friday.

?As per request made by the policy committee to speed up infrastructure projects, PLN has included Pasuruan combined-cycle power plant and Central Java coal-fired power plant (in the model projects). These projects must follow the scheme set up by the government,? Parno said.

Meanwhile, what will happen to the remaining four projects remains unclear.

PLN is still studying whether the tender must start from the beginning or it will be enough to just invite the previous bidders. PLN is expecting that these projects will be completed by 2011 or one year late of the initial target.

The six projects, which went through the tender for IPPs process, are 1,500 MW Pasuruan combined-cycle power plant (US$500 million), 2x600 MW Central Java coal-fired plant ($1.2 billion), 2x100 Bali coal-fired plant ($200 million), 2x100 MW North Sumatra coal-fired plant ($200 million), 2x25 MW North Sulawesi ($50 million) and 2x60 MW East Kalimantan combined-cycle plant ($120 million).

Actually, these projects were first offered at the Infrastructure Summit in 2005 but no body was interested. Then the government had offered to investors through IPP scheme in September 2005. At least 154 companies have taken pre-qualification tender documents, which opened in April 2006.

Of the 154 companies, 38 were selected. The tender process now has reached the stage of technical evaluation and a study on administration matters. It has taken such a long time because recently the bidders wanted to seek clarification regarding the government?s guarantee and finally the tender process was stopped. (*)