Govt to make comparative study on pricing of power projects
Govt to make comparative study on pricing of power projects
JAKARTA (JP): An issue on high bidding prices hovering on
three power projects in Java has forced the government and the
House of Representatives (DPR) to recommend that the state
electricity firm PLN make a comparative study on similar plants
in Thailand.
Apparently, the plants in Thailand were constructed at a
significantly lower price.
"The government will send a team, involving officials of the
economic ministries and PLN, to make intensive studies on the
technology and costs for coal-fired power plants built in
Thailand," Coordinating Minister for Economy and Finance Saleh
Afiff told reporters after a monthly ministerial meeting on
economy here yesterday.
"This is one of the most important decisions made by officials
grouped in the Inpres I Team, which is still studying on the new
proposal made by the three consortiums," Afiff said.
He said that an on-the-spot checking and the comprehensive
analysis of Thai projects would help the Inpres I team make an
objective evaluation of the current proposal, especially as they
related to prices.
On April 26, the three consortiums slightly reduced their
bidding prices from a total of US$1.76 billion to $1.75 billion.
Some of DPR members said the new prices are still higher than
similar projects in Thailand.
Support
The chairman of DPR's Commission VI, MZ Wasaraka, said his
commission supported the plan to make comprehensive studies of
the Thai projects, thereby helping all parties concerned to be
realistic.
PLN's spokesman David Tombeg told reporters Saturday that
comparative studies on Thai plants were thus far based on reports
of the U.S. Black & Veatch Inc. (BVI), which was also hired by
the Thai government to consult on its power projects.
Tombeg claimed that the lower prices for the projects of the
Thai electricity company EGAT stemmed from the fact that EGAT did
not burden the local-content requirements and costs for risks to
their contractors.
Afiff said that the initiative to make comparative studies in
Thailand is not because his team has found alleged irregularities
among PLN's officials.
"Please, don't make any accusations about PLN. We are now in a
good position to solve the problem," he said.
Wasaraka and Tadjuddin also concurred that accusations about
PLN executives would be premature. "We have no proof on any
irregularities in PLN. And sanctions against PLN's officials will
not solve the main problem," Wasaraka said.
Wasaraka's statement seemed to neutralize the opinions about
alleged collusion between PLN and its contractors.
Tombeg said PLN would ask the consortiums to review the
inclusion of risk factors in their cost calculation.
However, he cautioned that cost reduction should not affect
the quality of the planned projects. (fhp)