Consortiums lower prices for power projects<\/p>\n
JAKARTA (JP): The three consortiums who have bid to set up
\npower plants in West, Central and East Java are willing to reduce
\ntheir prices only very slightly to a total of US$1.75 billion
\nfrom $1.76 billion, the State Electricity Company (PLN) says.<\/p>\n
PLN's spokesman David Tombeg told The Jakarta Post here
\nyesterday that the company is still studying the new proposals of
\nthe consortiums.<\/p>\n
Yesterday, PLN's director for development, Roeswito, declined
\nto give any comment on the newly proposed prices. \"Please, wait
\nuntil we finish the study,\" he said.<\/p>\n
Under the new proposals dated April 26, which are a revision
\nof the Feb. 26 proposals, the consortium of Asea Brown Bovery
\n(ABB) of Switzerland and Marubeni of Japan is ready to reduce the
\nprice for the construction of a 982-megawatt (MW) combined-cycle
\npower plant at Muara Tawar in West Java from $743,973,314 to
\n$743,973,000.<\/p>\n
The consortium of Japan's Sumitomo and General Electric of the
\nUnited States offered to lower the price for establishment of a
\n505-MW one-cycle power plant at Tambak Lorok in Central Java to
\n$394 million from $395 million. The consortium of the Japanese
\nMitsubishi and the German Siemens offered to cut the cost for the
\nconstruction of a 855-MW combined-cycle power generation plant at
\nGrati in East Java to $617.4 million from $630 million.<\/p>\n
The three consortiums had reduced their prices from a total of
\n$2.14 billion last year to $1.76 in February.<\/p>\n
GEC Alsthom International of France has reportedly offered a
\nprice of $1.35 billion for construction of the three projects.<\/p>\n
Tombeg said PLN is not in a position to confront Alsthom with
\nthe three consortiums.<\/p>\n
Tombeg said if PLN's team and the government find out that the
\nprices offered by the three consortiums are still too high, PLN
\nwill ask the consortiums to cut the prices further.<\/p>\n
\"If they are reluctant to do so, you will see that the
\nprojects will be offered in open biddings,\" he pointed out. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consortiums-lower-prices-for-power-projects-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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