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State electricity firm PT Perusahaan Listrik Negara (PLN)
said it would announce the winners of the tenders for two coal-fired
power plants next week, having secured price-offering bids from nine
consortia Wednesday.
The bids should have been submitted earlier but the submission period
was extended for a week at the tender participants' request.
"We are receiving their final price-offerings today (Wednesday) and
will announce the winners for the two power plants next week," said PLN
bidding committee chairman Choiruddin Martondang.
The two power plants are the New Suralaya plant, which is located in
Banten, and the New Paiton plant, located in East Java alongside the
existing Paiton power plants. Each of the new plants will have a
capacity of between 600 and 700 megawatts.
On Wednesday, four consortia submitted their price offers for
constructing the Suralaya power plant: the CNTIC consortium with an
offer of US$377.9 million, the Marubeni-Doosan-PT Tripatra-PT MCC
consortium with an offer $623 million, the Dongfang-Dalle-HEPEC
consortium with an offer of $364 million and the Shanghai Maxima
consortium with an offer of 493.9 million.
Meanwhile, five consortia submitted price offers for the Paiton power
plant: the Chengda Engineering Corporation-Wijaya Karya consortium with
an offer of $273 million, the HPE-MSHE consortium with an offer of $423
million, the Marubeni-Doosan-PT Tripatra-PT MCC consortium with an
offer of $728 million, the China Huadian-PT DGI consortium with an
offer of $363.5 million and the Shanghai Maxima consortium with an
offer of $543.7 million.
Although many of the Indonesian-Chinese consortia proposed much lower
prices than the Indonesian-Japanese consortia, Choiruddin said the
construction price represented only one of the variables PLN would take
into account in determining the winners.
"The winner for each project will not necessarily be the one with the
lowest construction price. We've other criteria to consider. Two of the
most important are the plant's performance guarantee and the end-price
for the customer, which is measured in rupiah per kilowatt per hour,"
he said.
The end-price, Choiruddin said, would be influenced by other
calculations, including the costs of generation, operation and
maintenance, and the duration of the return on investment period.
"We will need some time to evaluate their proposals," he said.
The two power plants are part of the government's 10,000 MW "crash
program" aimed at helping prevent power shortages and cutting the
nation's dependence on oil-based fuels for generating electricity.
Due to financial constraints and its commitment to adhering to
free-market best practice, the government is procuring the power plants
on a public-private partnership basis.
To attract investors, Vice President Jusuf Kalla has said the
government would ensure that PLN would buy the power produced by the
plants at agreed prices. If PLN was experiencing financial difficulties
and could not pay the agreed prices, the government would then step in
to make up the difference.
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