PLN Terminates Contract of Two China's Firms

Operasional PLTU Muara Karang
Sumber :
  • VIVAnews/Ikhwan Yanuar

VIVAnews - State electricity company PT Perusahaan Listrik Negara terminated two Steam-Generated Power Plant (PLTU) contracts, namely PLTU Gorontalo 2x25 MW and PLTU Selat Panjang, Riau 2x7Mw from Chinese contractor as the company failed to execute the projects. 

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PLN Director of Construction, Nasri Sebayang, said the two PLTU which were originally included in the 10,000 MW power plant construction acceleration program are brought to an end because the contracts that were agreed in 2008 were not executed until 2011. 

“They’re terminated because of a failure to perform for 2-3 years. In fact, the contractor felt no longer able to execute it,” said Nasri in Jakarta on Tuesday. 

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Nasri explained that PLN had to terminate the contracts because even if the contracts were to be continued, they would not be completed until 2014, the targeted completion year for all 10,000 MW power plant program.

Change Auction Method 

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Meanwhile, to anticipate poor power plant construction technical quality, PLN has changed its power plant construction auction model since 2010.

According to Nasri, PLN previously used the 1 stage 2 envelopes model, where the candidates proposed technical details and prices. Nowadays, PLN uses two stages. 

In the first phase, candidates must submit technical proposal without having had to attach the price of power plant construction.  PLN then evaluates the technical proposal and makes comparison (apple to apple) of each candidate. 

By equally comparing all candidates’ specifications, the price proposed cannot be set randomly. “If a candidate passes, then it can propose the price. One offering the best price will be selected by PLN,” he said.

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