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Jakarta Post

Power plant contractors face fines due to delays

  • Rabby Pramudatama

    The Jakarta Post

Jakarta   /   Wed, July 25 2012   /  05:00 am

Most construction companies involved in the development of power plants under the first 10,000 megawatt (MW) fast-track program may be fined for construction delays, a senior official at the Energy and Mineral Resources Ministry has said.

The ministry’s director general of electricity, Jarman, said that contractors who failed to complete their projects according to schedule would receive fines of up to 10 percent of the total project value.

“Except PLTU Labuan, all the power plants being built under the first 10,000 MW program are behind schedule,” he added.

Overall, the completion rate of the 10,000 MW power plant project had reached over 40 percent up to July this year, Jarman said, adding that the rate was expected to increase to 60 percent by the end of the year.

“We have received 4,500 MW of power supply from the program, and we expect to get an...