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Defying protests from other bidders, state electricity firm
PT Perusahaan Listrik Negara (PLN) will go ahead with its plan to sign
a letter of intent next week to formally name China National Technical
Import & Export Corp. (CNTIC) and Harbin Power, also of China, as
the winners of the tender for the construction of two 600 megawatt
coal-fired power plants in Suralaya in Banten and in Paiton in East
Java, respectively.
PLN director of power plants and primary energy Ali Herman said in
Jakarta on Friday that the final contracts with the two companies would
be signed on Jan. 19.
"There will be a process for adjustment and renegotiation before the
contract signing," Ali said.
Commenting on protests from other bidders, he said that PLN would stick
to the tender committee's decision on the winners of the two power
projects.
On Dec. 8, CNTIC was selected as the winner of the tender for the
construction of the Suralaya Baru power plant in Suralaya, Banten, and
Harbin as the winner for the construction of the Paiton Baru power
plant in East Java, based on the consideration that the two companies
offered the cheapest prices for the construction of the two power
plants.
According PLN's calculations, CNTIC offered the lowest price of Rp 378
(3 U.S. cents) per kilowatt hour (kWh) for constructing the Suralaya
power plant, while its competitor, the Shanghai Maxima consortium
offered Rp 378.97 per kWh, the Dongfang-Dalle-HEPEC consortium Rp
379.97 per kWh and the Marubeni-Doosan-PT Tripatra-PT MCC consortium Rp
414.59 per kWh.
For the Paiton power plant, Harbin submitted the lowest price of Rp
385.76 per kWh, while other bidders, the Shanghai Maxima consortium Rp
398.42 per kWh, the China Huadian-PT DGI consortium Rp 420.95 per kWh
and the Marubeni-Doosan-PT Tripatra-PT MCC consortium Rp 421.07 per kWh.
However, other bidders, including China Huadian and Dongfang, say that
they made better offers with better plant specifications.
In its objection materials, China Huadian said that its offer was $378
million cheaper than the one offered by Harbin Power because it needed
only eight months to complete the construction works, shorter than the
36 months offered by the winner.
The objection addressed to CNTIC was submitted by Dongfang, saying that
the machine used by the winner had emission was above the normal rate
of 750 milligram ---- per cubic meter.
In response, Ali said that the duration for projects had been
determined based on PLN's due diligence, saying that the period of 36
months was the most ideal for the construction project.
"All the bidders have also agreed on the duration of 36 months in the
first offer. So, it would be not fair to also evaluate the one who
offered 28 months," Ali said.
Commenting on the emission issue, he said that he could guarantee that
the coal which would be used for the project was the highest quality
and contained little sulfur.
He said that if the bidders remained dissatisfied with the result, they
could take a legal action, while PLN would stick to its schedule for
the projects as part of the government's "crash program".
The program, which is aimed at helping prevent power shortages and
cutting the nation's dependence on oil-based fuels for generating
electricity, is targeted for completion by 2009.
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