Govt to make comparative study on pricing of power projects<\/p>\n
JAKARTA (JP): An issue on high bidding prices hovering on
\nthree power projects in Java has forced the government and the
\nHouse of Representatives (DPR) to recommend that the state
\nelectricity firm PLN make a comparative study on similar plants
\nin Thailand.<\/p>\n
Apparently, the plants in Thailand were constructed at a
\nsignificantly lower price.<\/p>\n
\"The government will send a team, involving officials of the
\neconomic ministries and PLN, to make intensive studies on the
\ntechnology and costs for coal-fired power plants built in
\nThailand,\" Coordinating Minister for Economy and Finance Saleh
\nAfiff told reporters after a monthly ministerial meeting on
\neconomy here yesterday.<\/p>\n
\"This is one of the most important decisions made by officials
\ngrouped in the Inpres I Team, which is still studying on the new
\nproposal made by the three consortiums,\" Afiff said.<\/p>\n
He said that an on-the-spot checking and the comprehensive
\nanalysis of Thai projects would help the Inpres I team make an
\nobjective evaluation of the current proposal, especially as they
\nrelated to prices.<\/p>\n
On April 26, the three consortiums slightly reduced their
\nbidding prices from a total of US$1.76 billion to $1.75 billion.<\/p>\n
Some of DPR members said the new prices are still higher than
\nsimilar projects in Thailand.<\/p>\n
Support<\/p>\n
The chairman of DPR's Commission VI, MZ Wasaraka, said his
\ncommission supported the plan to make comprehensive studies of
\nthe Thai projects, thereby helping all parties concerned to be
\nrealistic.<\/p>\n
PLN's spokesman David Tombeg told reporters Saturday that
\ncomparative studies on Thai plants were thus far based on reports
\nof the U.S. Black & Veatch Inc. (BVI), which was also hired by
\nthe Thai government to consult on its power projects.<\/p>\n
Tombeg claimed that the lower prices for the projects of the
\nThai electricity company EGAT stemmed from the fact that EGAT did
\nnot burden the local-content requirements and costs for risks to
\ntheir contractors.<\/p>\n
Afiff said that the initiative to make comparative studies in
\nThailand is not because his team has found alleged irregularities
\namong PLN's officials.<\/p>\n
\"Please, don't make any accusations about PLN. We are now in a
\ngood position to solve the problem,\" he said.<\/p>\n
Wasaraka and Tadjuddin also concurred that accusations about
\nPLN executives would be premature. \"We have no proof on any
\nirregularities in PLN. And sanctions against PLN's officials will
\nnot solve the main problem,\" Wasaraka said.<\/p>\n
Wasaraka's statement seemed to neutralize the opinions about
\nalleged collusion between PLN and its contractors.<\/p>\n
Tombeg said PLN would ask the consortiums to review the
\ninclusion of risk factors in their cost calculation.<\/p>\n
However, he cautioned that cost reduction should not affect
\nthe quality of the planned projects. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-make-comparative-study-on-pricing-of-power-projects-1447893297",
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"sponsor": "Okusi Associates",
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