Consortium JPower-Itochu-Adaro wins tender for Java power plant 2x1000MW amount U.S.$ 3 billion

JAKARTA-Perusahaan Listrik Negara (PLN Persero) set JPower-Itochu-Adaro consortium as the winning bidder for 2X1.000 MW power plant after conducting an evaluation of the documents signed on June 1, 2011.

Thus, this consortium will certainly work on the massive project amount U.S. $ 3 billion a very strategic to anticipate the growth of plants in Java and Bali, with Public Private Partnership (PPP).

Before you set as the winner, this consortium has been through a long process. Tender which initially followed by dozens of companies (consortium) of this international eventually leaving only seven companies that qualified, three Japanese companies, three Chinese companies and one company from South Korea.

However, the tender closing date 29 April and only four companies (a consortium of companies) who submit bids, namely China Shenhua Energy Company Ltd. and the Consortium Yudean Guandong (China), the Consortium JPower-Adaro-Itochu and Marubeni Corporation (Japan).

Of the four bidders, the further technical evaluation and administration and on May 24, 2011 stipulated that pass the evaluation is JPower-Itochu consortium-Adaro. Further evaluation of the bid price before determining the winner.

Responding to the success of this tender Dahlan Iskan PLN president director said "We feel relieved of Directors PLN has already successfully bid 2x1000 MW power plant in Central Java which is very historic for PLN and the Government of Indonesia. Tender is historic because this is the first PPP project Indonesia that successfully tendered. "

Dahlan also convey a feeling of relief because it is through a competitive process and assurance of support from PT PII and Minister of Finance, which is obtained from the tender price is very good, which is 5.79 cent USD / kWh.

Project Assurance

Head of fiscal policy (BKF) The Ministry of Finance Bambang PS Brodjonegoro Tender winner said with the enactment of this power plant in Central Java, shows that the government guarantee scheme through PT Guarantee Infrastructure Indonesia (Persero) is very feasible, because even though the guarantee scheme included in the calculation of costs, fixed offering price was far below the price estimate, while (HPS).

Further said that this project is very important because it is the first PPP project as a whole procured under Presidential Decree No. 13/2010.

In addition, this project also obtain assurance that the Government guarantee scheme shared between the Government of Indonesia and PT Guarantee Infrastructure (PII), which obtained a mandate from the Government based on Presidential Regulation No. 78 of 2010, where all relevant processes Guarantee executed by PII under the concept of 'single window policy '.

The success of the tendering process so far has shown that the concept of assurance through the PII has been accepted by the private sector is characterized by the absence of a note of assurance aspects in the proposal offered by the bidders.

PPP Agreement (Power Purchase Agreement - PPA) will be held simultaneously with the signing of the Guarantee Agreement
. "In accordance with the provisions in the process of granting the guarantee, the Treaty of Guarantee shall become effective when the PPA has been effective," said Bambang PS Brodjonegoro.

Furthermore he said that the Guarantee to KPS power plant in Central Java includes financial obligations of certain PLN in PPA, which included among others the financial obligations associated PLN monthly electricity purchases from IPPs. (*)

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