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)