Legislators criticize steam power plant bidding

Legislators criticize steam power plant bidding

JAKARTA (JP): Legislators have criticized the government's
plan to use a non-transparent bidding process for the US$1.4
billion steam power plant in Tanjungjati A, Central Java.

Budi Hardjono and Oediyanto, both from the House of
Representatives' Commission VI on mining and energy, urged the
government yesterday to call for public tenders for the project.

They said that the government would tarnish its image if it
did not use an open process.

"The government should pick the bidder who offers the best
proposal with the lowest price," Budi, who represents the
Indonesian Democratic Party, told journalists.

Indonesia plans to build the $1.4 billion 1,200 megawatt steam
power plant in an effort to meet increasing demand for energy in
the fast growing Java.

Four consortia made up of local and foreign ventures have
submitted bids for the megaproject. They are Bakrie, Toyomenka,
Maharani and Entergy Power; ABB and CCM; Astra Marubeni and
National Power; and Sumitomo, Primanusaand Power Market
Development.

It is believed that the government favors the Bakrie
consortium, which has offered a price of US$0.00620 per kilowatt,
but the lowest price, US$0.00579 per kilowatt, has been submitted
by the ABB and CCM consortium.

Budi said the government should not sign a contract with the
Bakrie consortium before seriously considering the other bids.

"We don't care who eventually gets the contract, but it is
important that there is no loss to the government or the public,"
he said.

Oediyanto, a prominent legislator from the Armed Forces
faction, said that the government would be putting its reputation
on the line if it insists on awarding the contract to a non-
competitive bidder for unexplained reasons.

"The result of the tender should not give more trouble to PLN
(the state-owned electricity company)," he said. (pan)