JP/8/PLTGU
JP/8/PLTGU
Export credit for gas, steam power projects reviewed
JAKARTA (JP): Coordinating Minister for Economy and Finance
Saleh Afiff has confirmed that the export credit allocations for
three power plant projects in Java already awarded on a repeat-
order basis would be reviewed.
"The review is necessary because the Ministry of Mines and
Energy is reevaluating the prices of the three projects," Afiff
was quoted by the Antara news agency yesterday as saying.
Afiff did not rule out the possibility of awarding the three
projects to other consortiums if the prices offered by the
present contractors were considered unusually high.
Afiff last June approved US$1.3 billion in export credits for
the three power projects.
Afiff also asked the Ministry of Mines and Energy to see to it
that the three projects use as small amount of yen loans as
possible in view of the appreciation of the Japanese currency
against the American dollar.
The government early last month awarded the three gas and
steam power plant projects on a repeat-order basis to foreign
contractors after they agreed to lower their total bidding prices
from a total of $2.14 billion to $1.76 billion.
The 982-megawatt Muara Tawar combined-cycle (steam and gas)
power project in West Java was awarded to a consortium of German
ABB and Japanese Marubeni, the 505-megawatt Tambak Lorok once-
cycle project in Central Java to a group of Japanese Sumitomo and
American General Electric and the 855-megawatt Grati combined-
cycle power project in East Java to a consortium of Japanese
Mitsubishi and German Siemens.
Higher
However, sources who followed the evaluation of the projects,
contended that the lowered bidding prices of the contractors were
still much higher than those offered by GEC Alshtom.
They said the reduced prices amounted to $755 per kW, still
much higher than the $600 per kW price offered by the Anglo-
French company for a double-cycle plant and $500 per kW for one-
cycle (gas) plant.
The sources argued that the government could still save
another $350 million if the projects were awarded through a
limited competitive bid and not entirely on a repeat-order basis.
In a related development, the Secretary General of the
Ministry of Mines and Energy, Umar Said, confirmed on Thursday
that he had summoned the representatives of GEC Alsthom regarding
the three power projects, but he declined to elaborate.
The State Electricity had repeatedly argued that the three
projects should be awarded on a repeat-order basis to speed up
their implementation in order to cope with the severe power
shortages at present. (vin)