State power company PLN awarded six contracts worth Rp 913 billion (approximately US$99.7 million) in total to local companies Thursday for the construction of power transmission networks.
Speaking to reporters following the signing of the contracts, PLN transmission and distribution director Herman Darnel Ibrahim said five of the contracts were for the construction of transmission facilities for new coal-fired power plants to be built under the 1,000 megawatt power crash program.
A total of 33 transmission facilities will be built as part of the project.
"We want to make sure the power connections will be ready as soon as the construction of the power plants is completed," he said.
The five contracts were awarded to Modaco Enersys, Modern Jaya Cons, Tehate Putra Tunggal, a consortium of PR Citicon, Adhinugraha and Kencana Alam Putra and a consortium of Meta Epsi and Dalima Raya.
Modaco Enersys won a contract worth Rp 18.86 billion to build a transmission facility for the 600-megawatt Suralaya Baru power plant in Banten, West Java.
The consortium of Meta Epsi and Dalima Arya will build a power grid worth Rp 247.8 billion for the 900-megawatt Indramayu power plant in West Java, while Tehate Putra Tunggal will build a power connection valued Rp 216.9 billion for the 1,050-megawatt Pelabuhan Ratu power plant in West Java.
The consortium made up of Citicon Adhinugraha and Kencana Alam Putra were awarded a contract worth Rp 141.26 billion to build a transmission network for a 600-megawatt power plant in Rembang, Central Java, while Modern Surya Java Kons was awarded a contract worth Rp 79.49 billion to build a power transmission grid for the Tanjung Awar-Awar power plant in Tuban, East Java.
Herman said the construction of the power grids was expected to be completed six months before the power plants started operating in April 2009.
"Another seven contracts related to power transmission projects will be signed in October, and a further 21 contracts will be signed by November," Herman said.
He said the company would need at least Rp 18 trillion to complete the transmission projects.
Aside from projects related to the crash program, PLN also signed Thursday a contract worth Rp 209.8 billion for the construction of a power grid spanning 3 kilometers connecting Madura Island and Java.
The grid will be built by Centra Multi Elektrikindo and is expected to be completed within 16 months.
PLN president director Eddie Widiono said the crash program could be completed by the end of 2009 as scheduled, despite the fact 14 power projects outside Java had to be re-tendered due to a lack of bidders.
Under the program, PLN will build 10 coal-fired power plants with a total capacity of 6,900 megawatts in Java and 25 power plants outside Java with a total capacity of 3,100 megawatts. Construction of some of the projects has already commenced.