Update 2: China?s CNTIC and Harbin win Suralaya and New Paiton power projects

Friday, December 8 2006 - 11:42 AM WIB

(Adds more details on bidding prices and contract signing schedule)

State owned electricity firm PT Perusahaan Listrik Negara has named the China National Technical Import and Export Corp (CNTIC) consortium and Harbin Power Engineering as winners of the tender to build two coal fired power plants that are part of the government?s 10,000 MW fast track power plant projects.

The CNTIC consortium won the contract to build the Suralaya (Banten 1) power plant in Banten, while Harbin was named the winner of the contract to build the New Pation (Jatim 2) power plant in East Java. Each of the power plants has the power generation capacity of between 600 MW and 700 MW.

Of all power plants to be built under the 10,000 MW program, PLN has only finished the bidding process of the two power plant projects. The program aims to build a number of coal-fired power plants across the country with a total capacity of 10,000 as part of the effort to boost the nation?s power supplies and diversify fuel sources for power plants. The program is particularly aimed at replace the expensive diesel power plants.

Chairuddin Matondang, head of PLN?s auction team for the 600-700 MW projects, for the Suralaya project, there were four bids from China National Technical Import and Export Corp (CNTIC) consortium, Marubeni-Doosan-Tripatra, Dongfang Electric-Dalle Energy and Shanghai Electric Group-Maxima Infrastruktur.

Among the consortiums, CNTIC offered a price of Rp 378.97 or 4.124 US cents per kWh with the gross output of 625 MW and financing from China Exim Bank; Shanghai-Maxima Rp 378.97 or 4.132 cents per kwh with the gross output of 625 MW and financing from China Exim Bank; Dongfang-Dalle Rp 414.59 or 4.139 cents per kwh with the gross output of 621 MW ; and Marubeni-Dosan-MCC-Tripatra Rp 414.59 or 4.52 cents per kwh with the gross output of 700 MW and financing from JBIC, Japan Commercial and KEXIM.

In case of New Paiton project, there were five bidders. They are Chengda Engineering Corporation, the consortium of Harbin Power Engineering and MSH Energi, the consortium of Marubeni, Doosan, PT MMC, PT Tripatra; the consortium of China Huadian Corp and PTDGI and the consortium of Shanghai Electric and Maxim Infrastruktur.

As a matter of fact, Chengda offered the lowest power price, but PLN decided to disqualify it because the company was still uncertain where it would get financing for the project.

PLN thus picked Harbin, that offered the second lowest price, as the winner of the project, Chairuddin explained.

Harbin-MSH set the price of that they will produce from the New Paiton project at Rp 385.76 or 4.206 cents per kwh with the gross output of 660 MW and financing from China Exim Bank; Shanghai-Maxima at Rp 398.42 or 4.344 cents per kwh with the gross output of 625 MW and financing from China Exim Bank; China Huadian-PTDGI at Rp 420.95 or 4.590 cents per kwh with the gross output of 621 MW and financing from China Exim Bank; Marubeni-Dosan-MCC-Tripatra at Rp 421.07 or 4.591 cents per kwh with the gross output of 700 MW and financing from JBICD, Japan Commercial and KEXIM.

Chairuddin said PLN would send letters for all bidders to evaluate the tender results for three days. If there are no complaints, PLN will sign letter of intent with the winners of the tenders.

?We expect to sign the LOIs this month and the contracts in January next year,? Chairuddin said, adding that PLN has prepared lands for the construction of the two power plants. (Godang)

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