Siemens wins Muara Tawar power project<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
A Siemens consortium has won the tender for construction of
\nthe expansion of Muara Tawar power plant in Bekasi, West Java,
\nstate electricity company PT PLN announced on Monday.<\/p>\n
The Siemens consortium, comprising PT Siemens Indonesia, PT
\nBalfour Beatty Sakti Indonesia, Samsung Corporation and Siemens
\nAG, was chosen on the grounds that it had offered the lowest
\nprice in terms of rupiah per kilowatt capacity compared with the
\ntwo other competitors, Alstom and IMECO GE consortium, said PLN
\npresident Eddie Widiono.<\/p>\n
"The winner was selected after a study into the price of the
\nelectricity produced that the consortium has offered, the amount
\nof investment and the share ownership of PLN after the power
\nplant has been running for 20 years," Eddie said at his office.<\/p>\n
In terms of the power capacity price, the Siemens consortium
\nmade the lowest offer, Rp 2.6 million, equivalent to US$288.95
\nper kilowatt of capacity.<\/p>\n
In comparison, Alstom offered a price at Rp 3.3 million per
\nkilowatt capacity and IMECO Rp 3.4 million.<\/p>\n
In terms of the project's value (excluding value-added tax),
\nthe Siemens consortium also beat its competitors. It offered $248
\nmillion (Rp 2.2 trillion), far lower than the $312 million
\noffered by Alstom and $254 million by IMECO.<\/p>\n
Having won the tender for the project, the Siemens consortium
\nwill be obliged to build six power units, each with a generating
\ncapacity of 100 Megawatts (MW) to 150 MW.<\/p>\n
Project construction, an extension of the existing Muara Tawar
\npower plant, should start at the end of this month, and is
\nscheduled to continue until the middle of July 2004.<\/p>\n
According to Eddie, the Muara Tawar project was initiated by
\nPLN after it learnt last year that a power crisis might be
\nimminent in Bali and Java in 2004. A power crisis would be
\ndangerous for the country's political stability. "Moreover, the
\ncountry will hold general elections that year," he said.<\/p>\n
Total capacity of the Java-Bali power grid is currently some
\n18,000 MW, with a peak load of 13,700 MW. Without expansion of
\nthe capacity, a power crisis would be imminent, given that power
\ndemand grows by 8 percent annually.<\/p>\n
The anticipated power crisis was precipitated by construction
\ndelays over another power plant, Tanjung Jati B, Jepara, Central
\nJava, which was finally left in limbo due to financial
\ndifficulties. Tanjung Jati B, if constructed, would have
\nstrengthened the Bali and Java power grid by 2004, but after
\ndifficulties in raising funds for the project, the deadline for
\ncompletion of its construction was postponed to 2006.<\/p>\n
Eddie said that in order to substitute for the Tanjung Jati B
\nproject so as to meet Bali and Java power demand in 2004, a
\nCabinet meeting approved PLN's proposal last October on the
\nexpansion of the Muara Tawar power plant, which would be equipped
\nwith combined open-cycle gas turbines.<\/p>\n
Eddie said that to help finance the project, PLN would issue
\nbonds worth Rp 900 billion in the near future. The company would
\nfinance the balance of the investment cost from its own funds and
\ndomestic loans.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/siemens-wins-muara-tawar-power-project-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}