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)