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PLN: Central Java steam power plant tender according to procedure

JAKARTA: PT PLN certified that it has executed the 2x1.000 MW Central Java steam power plant tender correctly according to procedures.The tender has been executed fairly and using correct procedure without any intervention, PLNs President Director Dahlan

JAKARTA: PT PLN certified that it has executed the 2x1.000 MW Central Java steam power plant tender correctly according to procedures.The tender has been executed fairly and using correct procedure without any intervention, PLNs President Director Dahlan Iskan affirmed when contacted by Bisnis, yesterday.Dahlan was asked for his response concerning the rebuttal letter submitted by Marubeni consortium since it feels aggrieved by the tender process result worth US$3.2 billion.PLN has decided JPower-Itochu-Adaro consortium as the winner, which overran three other bidders like Marubeni Corporation, China Shenhua Energy Company Ltd, and Konsorsium CNTIC-Guandong Yudean.The three bidders have time to submit rebuttal letter until June 11 but only Marubeni consortium that had submitted such letter to PLN.According to Rahayu Hoed, attorney of Makarim & Taira Office, Marubeni has sent a rebuttal letter to PLN on Wednesday, June 8 and declared that it feels aggrieved by the tender process result. (Bisnis, June 10)Dahlan said its a common thing to refute tender result even in small tenders so that the rebuttal letter from Marubeni isnt something big and new.PLN has received Marubenis rebuttal letter and found no new argument. In fact, it already explained the reason why the consortium didnt pass the tender process.We will respond the rebuttal letter according to procedure as fair as possible. However, Marubeni didnt express anything new in the letter. We already know it has that kind of argument, he said.Being studiedThe rebuttal letter will be handed over fully to the auction team to respond.The procurement committee is currently reviewing the rebuttal letter. We will publish our response in detail, PLNs Risk Management and Business Director Murtaqi Shamsuddin said.Meanwhile, observer of electrical issues Fabby Tumiwa said PLN needs to clarify the tender regulation so that its implementation could be more transparent. According to him, the chance of lottery project' is common in electricity projects.Such complaint from Marubeni means that there is inaccuracy in the tender process. First of all, the tender regulation must be clear then its process should be clear too. The chance of aberration in electricity projects is very big especially for big projects. Lottery project is very possible to occur, he added.Central Java steam power plant project was a show case of public private partnership (PPP) that executed according to President Decree No 13/2010. Its an amendment of President Decree No 67/2005 on government cooperation with business entity in procuring infrastructure.This project received collective guarantee between the government and PT Penjaminan Infrastruktur Indonesia (PII) in line with President Decree No 78/2010 on infrastructure guarantee in cooperation project between the government and business entity that conducted through infrastructure guarantee entity.The company will provide IDR300 billion guarantee for the project worth IDR30 trillion according to the company financial capability, PIIs President Director Sintya Roesli said.Such large guarantee value is provided more to the structuring of guarantee processed by PII as the single window policy implementation of government guarantee.In addition, such guarantee from PII will increase the possibility of private investor to join in the project since there is government guarantee. (14/Zufrizal) (t06/msw)

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