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Jakarta Post

No companies interested in three PLN projects last year

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, January 23, 2017   /  01:05 pm
No companies interested in three PLN projects last year A technician from state-owned electricity firm PLN checks electricity cables. (Antara/Akbar Nugroho Gumay)

State-owned electricity company PT PLN has said no companies were interested in participating in tenders for three power plant projects that were offered last year, according to a company official. 

The three are a 100 megawatt (MW) power project in West Kalimantan known as Kalimantan II, a 200 MW power plant in Riau province and a 50 MW power plant also in Riau.

“No companies submitted bidding documents when the tenders were offered,” PLN procurement director Supangkat Iwan Santoso said as reported by tempo.co on Monday, adding that the projects were offered based on the independent power producer (IPP) scheme.

(Read also: Ongoing 35,000 MW project needs rethinking: Jokowi)

He said private companies were not interested in the projects because their scale was too small and because PLN could not guarantee that they would be optimally operated because they would only function as buffer plants.

He said because of the failure, projects in Riau that were initially set to be operated this year would be postponed to next year, while the plant in West Kalimantan was expected to operate by the end of 2018.

Currently, PLN is evaluating the scheme for the offers to ensure that the projects will be able to attract investors or that PLN could implement the projects on its own.

By June this year, PLN is set to procure 12,000 MW of power plants, while throughout the whole year, a total of 20,000 MW power plants will be constructed. (bbn)  

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