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PLN holds tenders to buy coal
State utility firm PT PLN is holding another tender for coal procurement as it strives to secure up to 3
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State utility firm PT PLN is holding another tender for coal procurement as it strives to secure up to 3.26 million tons of low rank coal per year for the next 20 years to fuel its power plants.
Nasri Sebayang, head of PLN’s primary energy unit, said that the tender is the third tender this year.
“We may hold more tenders in the event some of the current tenders failed,” Nasri said in a text message on Friday.
In its official announcement, PLN invited coal mining companies or consortium of coal companies to participate in pre-qualification for the bid to supply low rank coal for PLN’s power plants in twelve locations for an estimated total volume of 3.26 million tons a year for a 20 years contract.
The twelve power plants are located in Teluk Naga (Tangerang, Banten), Pelabuhan Ratu (Sukabumi, West Java), Nagan Raya (Aceh Province), Pesisir (West Sumatra), Bangka and Belitung (Bangka and Belitung Islands), Bengkalis and Selat Panjang (Riau), Tarahan Baru (Lampung), Pangkalan Susu (North Sumatra), Asam-asam (South Kalimantan), and Tanjung Balai Karimun (Riau Islands).
PLN is looking for coal with calorie value of between 4,000 and 4,500 kCal/kg for power plants in Teluk Naga and Pelabuhan Ratu; between 3,900 and 4,700 kCal/kg for power plants in Nagan Raya, Pesisir, Bangka, Belitung, Bengkalis, and Tarahan Baru; and between 4,000 and 4,700 kCal/kg for power plants in Pangkalan Susu, Asam-asam, Selat Panjang, and Tanjung Balai Karimun.
PLN said that interested coal mining firms or consortium of mining firms must possess Coal Contracts of Works (CCOW) which are locally known as PKP2B contracts or mining rights (KP) and must already have reached production stage.
The mining firms must have mineable low rank coal reserves of at least 20 million tons.
They are also required to have experience supplying coal on an inter- island basis with a minimum volume of 200,000 tons per year.
Interested mining firms must register for the pre-qualification process between July 10 and 16, 2009 and take up documents between July 13 and 17, 2009. Bidders are required to pay Rp 5 million for the pre-qualification documents.
PLN is intensifying efforts to use non oil-based fuels, including coal, to help cut cost.
PLN says that it has cut power generation costs by Rp 2.5 trillion (US$243m) up to the end of May,
by reducing oil-based fuel con-sumption.
During the January-May period, PLN’s Java-Bali grid has reduced the amount of electricity generated from oil-based fuels by 4,944 GWh (gigawatt per hours), the company said.
