PLN APPOINT SUBSIDIARY DEVELOP JAWA-5 PROJECT

[CATEGORY: ELECTRICITY]

 

PT PLN will appoint one of its subsidiaries PT Pembangkitan Jawa Bali (PJB) or PT Indonesia Power, to develop the 2x1,000 MW PLTU jawa-5 coal- fired power plant project in Serang, Banten.

PLN Procurement Director Supangkat lwan Santoso as saying that PLN has decided to take over the power plant project, instead of assigning private investor, to quickly complete the project.

“Tender process will take eight months, financial closing 12 months, the project will not be completed in 2020," he said.

PLN recently suspended a tender process of the Jawa-5 power plant project, and later decided to take over the project. A strong candidate to win the project was a consortium led by China Oceanwide with members including PJB and Shanghai Electric Power.

PLN President Director Sofyan Basir said previously that the selection process of tender participants was not based on good governance principles. He added that PJB's 10 percent stake in the consortium was lower than the 30 percent request made by PLN. 

He explained that according to Presidential Regulation No 4/2016 on the acceleration of electricity infrastructure projects, PLN is allowed to directly select independent power producer as partner, without tender, in power plant projects where the state utility is the majority shareholder.

“Allowed to partner with IPP, but the important thing is that (PLN) must be majority (shareholder), with more than 50 percent (interest). If (PLN stake) is above 50 percent, we can own the project, without tender," he said.

All complete data can be seen at www.tender-indonesia.com

(The source of the Indonesia Oil and Gas, Mining, Electricity, Infrastrcuture, Telecommunication tender project and tender award)