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The government is considering exempting a number of planned
power plant projects from lengthy tender processes by applying the much
faster direct appointment mechanism instead.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said during a
seminar on power-plant procurement mechanisms Thursday that direct
appointment would be one way of ensuring a speedy solution to the
country's electricity crises.
At present, some 60 percent of the population has access to
electricity, but many parts of the country, including large swathes of
North Sumatra, Nangroe Aceh Darussalam, Riau and Central Sulawesi, have
yet to benefit from electrification.
"It is hoped that Indonesia will achieve an electrification level of
almost 100 percent by 2015," Purnomo added, while stressing the
importance of private sector involvement in the power plant projects
due to the budgetary constraints facing the state.
To respond to the power crisis, the government initiated the
10,000-megawatt (MW) crash program, which encourages private investors
to tender for the deliver of additional power supply of 6,900 MW in
Java and Bali, and 3,100 MW outside of Java by 2009.
Based on a 2003 presidential decree, direct appointment is permissible
in the case of projects worth less than Rp 50 million (US$5,434), and
emergency projects that need to be delivered swiftly.
During the seminar, Director General for Electricity and Energy Usage
J. Purwono said the crash program should be categorized as an emergency
as the projects were essential to resolving the power crises in many
parts of the country.
"Direct appointment would also be permissible in the case of power
projects using renewable energy, gas from marginal fields, and other
forms of local energy supplies, as well as mine-mouth power plants,"
Purwono said, citing another government regulation.
He said that investors that were interested in these kinds of power
projects could directly submit their proposals to state-owned
electricity utility PLN, which would then consult with the government.
"Capacity will depend on the area's needs and the price can be further
negotiated with the government," Purwono explained.
PLN power generation director Ali Herman Ibrahim said that direct
appointment would speed up the process of selecting private operators
and would help the company meet the country's rising demand for
electricity
In his presentation, Herman explained that a tender process took almost
395 days, or almost 13 months, from start to finish,
while a direct appointment only took about 121 days, or three months.
Currently, PLN has a total installed capacity of 24,417 MW, or 85.5
percent of the total national power generating capacity.
The remainder is accounted for by independent power producers (3,450
MW), and privately owned power plants supplying major industrial
undertakings (746 MW).
After the seminar, Herman said that PLN was planning to sign agreements
in April with a number of investors to upgrade the Muara Karang
gas-fired power plant in North Jakarta and the Muara Tawar gas-fired
plant in Bekasi.
A total of three interested investors -- Japan-based Marubeni,
France-based Alstom, and a consortium made up of Fuji, Samsung and
Mitsubishi -- have submitted bids for the Muara Tawar project, while
two Japanese investors -- Mitsui and Mitsubishi -- have submitted bids
for the Muara Karang project, he said.
Both plants, currently operating at 720-MW capacity, will have their
capacities increased by 300 MW each.
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