Power projects still in limbo<\/p>\n
JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana
\nyesterday declined to explain the fate of the State Electricity
\nCompany's (PLN) three major power projects in Java, which have
\nbeen in limbo for almost a year.<\/p>\n
\"We are still negotiating with all the contractors involved,\"
\nSudjana told newsmen after meeting President Soeharto at the Bina
\nGraha office here yesterday.<\/p>\n
\"The negotiations are being handled by PLN's special team,\"
\nthe minister said.<\/p>\n
Zuhal, PLN's president, who accompanied Sudjana on the
\noccasion, declined to comment.<\/p>\n
The controversy over the projects started last year when PLN,
\nwithout a competitive bidding process, appointed a consortium of
\nmulti-national contractors on a repeat-order basis.<\/p>\n
The three projects in Java are: The 982-MW Muara Tawar
\ncombined-cycle (steam and gas) plant project in West Java which
\nwas awarded to Asea Brown Bovery of Switzerland and Marubeni
\nCorporation of Japan, the 505-MW open-cycle Tambak Lorok plant
\nproject in Central Java to Sumitomo Corporation of Japan and
\nGeneral Electric of the United States and the 855-MW Grati
\ncombined-cycle plant project in East Java to Siemens from Germany
\nand Mitsubishi from Japan.<\/p>\n
Slash<\/p>\n
After direct presidential intervention, PLN managed to force
\nthose contractors to slash their bid prices by a total of US$378
\nmillion to $1.76 billion in February.<\/p>\n
At that time, PLN announced that the $1.76 billion price was
\nbased on the prices of the Tanjung Priok power units in Jakarta,
\nwhich amounted to $623.6\/kW for open cycle and $752.2\/kW for
\ncombined-cycle operations.<\/p>\n
The controversy, however, lingers to this day, especially
\nafter GEC Alsthom International of France's recent claim
\nthat the three projects could be done for a total of $1.4 billion
\nor $600\/kW.<\/p>\n
The Ministry of Mines and Energy decided to review the
\ndeal for the three power projects earlier this month.<\/p>\n
Meanwhile, Coordinating Minister for Economy and Finance Saleh
\nAfiff announced early this month that he will also review the
\nexport credit allocations for the three projects in view of the
\nrenegotiations of their prices. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/power-projects-still-in-limbo-1447893297",
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"sponsor": "Okusi Associates",
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