RI to open tender for power plant in Banten
RI to open tender for power plant in Banten
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta
The government will open bidding for a 500 megawatt coal-fired
power plant in Banten valued at US$500 million next month as part
of a massive project to secure a continued power supply in the
country.
The project is part of the second phase of the government's
independent power plant (IPP) program consisting of 10 power
plants nationwide.
Ministry of Energy and Mineral Resources director general for
electricity and energy utilization Yogo Pratomo said on Monday
that the government expected the power plants to operate by 2010
at the latest.
"Beside the first bidding for the Banten coal-fired power
plant in March, we will also open a tender for the other nine
power plants by 2006," he told reporters.
To ensure flexibility and continuity, only one of the 10 power
plants will be gas-fired while the rest will be coal-fired.
"It is more difficult to guarantee a secure supply of natural
gas. It is more flexible if we construct coal-fired power
plants," Yogo remarked.
After opening the bid, the government will select five
companies that pass the pre-qualification process to ensure
transparency of the project.
The winning bidder offering the most competitive price will
negotiate the price of the electricity with state electricity
company PT Perusahaan Listrik Negara (PLN). Only after they reach
a deal, the company will be awarded the contract.
Should the company fail to reach a deal with PLN, the
government will call on the second best of the five that has
passed the pre-qualification phase.
Among the 10 power plants are the North Sumatra power plant
with a capacity of 300 megawatts, the Tanjung Jati A and Tanjung
Jati C power plant in Central Java, each with a capacity of 1,200
megawatts.
The only gas-fired power plant is the Pasuruan power plant
with the capacity of 300 megawatts.
Yogo said that during a meeting with the Japanese economic
delegation, Chubu Electric Power Co. Ltd. managing director Shiro
Mizutani raised questions about the power plants.
"These projects were discussed with the Japanese delegation,"
he said.
During the meeting, Japanese power companies also expressed
the intention to increase their coal imports from Indonesia, as
China's coal exports are declining.
Mizutani said coal imports from Indonesia will be increased
gradually within five to six years.
"I can't tell the total consumption, but my company imports
nine million tons of coal annually," he said.