PLN opens tender for four power projects

Jakarta (ANTARA News) - The Indonesian electricity company (PLN) has opened a tender for four power projects which are part of the 35 thousand megawatt (MW) program under an independent power producer (IPP) scheme.

The four projects of 800 MW in total are Bangka-1 Steam Power Plant with a capacity of 2X100 MW, Kalselteng-3 Steam Power Plant of 2X100 MW, Kaltim-3 Steam Power Plant of 1X200 MW, and Kaltim-6 Steam Power Plant of 1X200 MW, spokesman of PLN Agung Murdifi said here Friday.

"The pre-qualification document will be open from August 1 to 25, 2016," he added.

The four power plants are expected to operate commercially by 2019, according to him.

The tender participants should have the experience of constructing power plants and have adequate financial capacity, Agung said.

The selected contractors will be developing, financing, building and operating the power plants, under a scheme of build own operate and transfer (BOOT) for 25 years, as per the power purchase agreement (PPA), he added.

In addition, the contractors will also be building transmission lines and facilities, which will be transferred to PLN as special facilities.

For the Kaltim-3 Steam Power Plant, the contractor will cooperate with a PLN subsidiary to implement the power project agreement (PPA).

In order to boost the number of domestic components used in the power plants, the contractor is required to use such national products as boilers, balance of plants (BOP), transformers, and wires, in addition to cubicles and steel, Agung said.

Several of the equipment should also be produced and manufactured by the Indonesian strategic companies namely PAL Indonesia, PT Bosma Bisma Indra, PT Barata Indonesia, and PT Pindad.

"We are expecting the domestic components used in the 35 thousand MW project to reach 40 percent of the total investment," Agung said.

The four steam power plant projects have been included in the Electrical Power Supply Business Plan 2015-2024.(*)