Procurement Plan of

Hydro Electric Power Plant Project

MKIs International Seminar

Optimization of Hydro Power Plant Project Development

August 31, 2012

Hydro Electric Power Plant Development Plan

Java-Bali 3.296 MW
Project

Owner

Location

Capacity
(MW)

COD

Role

Type of
Packaging

Status/ Tender will

start on

100 MW

2018

Peak Load

Multi package

Funding/2014

Karangkates #4-5

PLN

Central Java

Kesamben

PLN

East Java

37 MW

2017

Peak Load

Multi package

Funding/2014

Kalikonto-2

PLN

East Java

62 MW

2016

Peak Load

Multi package

Funding/2013

Jatigede

PLN

West Java

2x55 MW

2015

Peak Load

EPC
One package

Funding (export
credit) /2012

Upper Cisokan PS
(FTP-2)

PLN

West Java

4x260 MW

2016/17

Peak Load

Multi package

AMDAL finished.
Land acquisition/
2013

Matenggeng PS

PLN

Central-West
Java

4x225 MW

2019/20

Peak Load

Multi package

Update FS, Bid Doc

and EIA/2015

Grindulu PS

PLN

East Java

4x250 MW

2020/21

Peak Load

Multi package

FS Update/2016

Rajamandala (FTP-2)

IPP

West Java

2016

Peak Load

Not defined

47 MW

Hydro Electric Power Plant Development Plan

Western Indonesia 1.606,4 MW
Projects

Owner

Location

Peusangan 1-2

PLN

Aceh

Asahan III

PLN

Nanga Pinoh

Capacity
(MW)

COD

Role

Type of
Packaging

Status/
Tender will
start on

88

2016

Peak Load

Multi package

Tender
process

North Sumatera

174

2016

Base Load

Multi package

Tender
process

PLN

West Kalimantan

98

2017/18

Peak Load

Multi package

FS/2014

Masang-2 (FTP-2)

PLN

West Sumatera

55

2017

Base Load

Multi package

FS/2014

Simonggo-2

PLN

North Sumatera

86

2017

Base Load

Multi package

FS/2014

Merangin - PPP

IPP

Jambi

350

2017

Peak Load

Not Defined

FS-PLN/2014

Batang Toru - PPP

IPP

North Sumatera

510

2018

Peak Load

Not Defined

Plan/2015

Peusangan-4 (FTP-2)

IPP

Aceh

83

2018

Base Load

Not Defined

FS/2015

Simpang Aur (FTP-2)

IPP

Bengkulu

23.4

2015

Base Load

Not Defined

PPA

Semangka (FTP-2)

IPP

Lampung

56

2016

Base Load

Not Defined

PPA

Wampu (FTP-2)

IPP

North Sumatera

45

2014

Base Load

Not Defined

PPA Signed
JKU Signed

Hasang (FTP-2)

IPP

North Sumatera

38

2017

Base Load

Not Defined

PPA

Hydro Electric Power Plant Development Plan

Eastern Indonesia 1.679,5 MW
Projects

Owner

Location

Capacity
(MW)

Kusan

PLN

South Kalimantan

Kelai

PLN

East Kalimantan

2x75

Poso 2

PLN

Central Sulawesi

Bakaru II

PLN

Konawe

65

COD
2017

Role

Type of Packaging

Status/ Tender
will start on

Peak load

Multi Package

FS/ 2014

2019/20

To be advice

Multi Package

Plan/2015

2x65

2018/19

To be advice

Multi Package

Plan/2015

South Sulawesi

2x63

2019

Peak load

Multi Package

Plan/2015

PLN

South East Sulawesi

2x25

2016/17

Peak load

Multi Package

FS/2013

Watunohu

PLN

South East Sulawesi

2x28

2018/19

Base load

Multi Package

FS/2014

Poko

PLN

West Sulawesi

117

2020

Peak load

Multi Package

Plan/2016

Wai Tala

PLN

Maluku

54

2017/18

To be advice

Multi Package

Plan/2014

Baliem

PLN

Papua

50

2016-18

Base/peak

Multi Package

Tender process

Warsamson

PLN

West Papua

3x15.5

2015-17

Peak load

Multi Package

FS/2013

Poso

IPP

Central Sulawesi

195

2012

Base load

Not Defined

Construction

Bonto Batu
(FTP-2)

IPP

South Sulawesi

2x50

2017

Peak load

Not Defined

Tender process

Malea (FTP-2)

IPP

South Sulawesi

2x45

2016

Peak load

Not Defined

Tender process

Karama - PPP

IPP

South Sulawesi

450

2017

Peak load

Not Defined

FS-IPP/ 2012

Procurement of

Hydro Electric Power Plant Project PPP IPP

HEPP - Private Project Partnership

3 Projects Planned as Peakers
No
1

PPP IPP Projects

PLTA Karama
450 MW
COD 2019-2020

Status

PLTA Batang Toru

510 MW
COD 2019

PLTA Merangin
- Kerinci
350 MW
COD 2016-2017

Note:
1) Ready to Offer
2) Priority Project
3) Potensial Project

Bappenas telah menetapkan PLN sebagai Penanggung Jawab Proyek

Kerjasama (PJPK).
Masuk PPP Book tahun 2012 sebagai Priority Project dengan kategori
Government guarantee is required 2)
Proyek ini belum masuk dalam RUPTL 2011-2020.
Unsolicited PPP, Bappenas 26 April 2012.
Masuk PPP Book 2012 sebagai Potential Project dengan kategori: Not
eligible for direct government support; Government guarantee maybe
available 3)
Proyek ini belum masuk dalam RUPTL 2011-2020.
Merupakan proyek PLN yang akan diusulkan menjadi IPP dengan skema
PPP Solicited.
Masuk PPP Book 2012 sebagai Potential Project dengan kategori: Not
eligible for direct government support; Government guarantee maybe
available 3)

PPP Project
Business Model

Minister of Finance
Risk Management Unit
Guarantee
Policy

PT PII (IIGF)

Guarantee Fund

Recourse Agreement
Regulates: PLNs
obligation to pay regres

PLN
Contracting Agency
Power Purchase
Agreement

Guarantee Agreement
Regulates: Guarantee scope, period

Investors
Lender

PPP Project

Unsolited Project Scheme (Perpres No 67 Tahun 2005 & Amendments)

Article 11

Business Entity
(Initiator)
Consider of:

Project Proposal KPS to PJPK

Article 10

a. Exclude of the sector master plan;

b.Integrated technically to the sector
master plan;
c. Feasible economically and financially;
d.Government support in the form of
financial fiscal contribution

a. Feasibility study;
b.The form of cooperation;
c. Project funding plan and the source of fund;
and
d.Cooperation proposal plan, include schedule,
process and assessment.

PJPK
(PLN)
Stop
Article 12

Evaluation
No
Yes
Article 18-22

Article 13

Tender by PJPK

Initiator Receive Compensation

a. provision of additional point ; or
b.provision of right to match; or
c. Purchase of project initiation by PJPK or by the
tenders winning bidder

Establishment of
Procurement Commmitee
Tender process
Article 14

(1) The provision of additional point, maximum in 10% (ten percent) of

the Initiators tender value and announced publicly before
procurement process.
(2) The purchase of project initiation, as replacement cost by PJPK or
by the winning Bidder in the expense of Initiators Business Entity.
(3) The point addition and replacement cost, determined by PJPK based
on consideration of independent assessor, before procurement
process.

Funding Acquisition

Pasal 24

Winning Bidder
Determination by PJPK

Article 23
Contract Agreement Signing

PPP Project

Procurement Process

Compensation
scheme

PPA

IIGF

Guarantee Preparation

Preparation

Transaction
Advisory
Procurement

Bidding

Transaction Advisory
Business Scheme
RFP Proposal
Bid Evaluation

Financing

Construction

Operation

PPP Project

Unsolicited Project Implementation Procedure

PLNs Packaging Policy for

Hydro Electric Power Plant (HEPP) Project

Procurement

Packaging Policy
Multi or One Package
1)

2)

Multi-package Contract

I : Civil Works
II : Metal Works
III: Electro-mechanical Works
IV: Transmission Line Works
V : Other

(Unit Price Contract)

(Lump Sum Contract)
(Lump Sum Contract)
(Unit Price Contract)

One-package/Turnkey Contract

One Package Contract for all: Civil, Metal Works, ElectroMechanical Works, Transmission Line and other (if any)

Multi Package Contract

Advantages & Disadvantages

Detail Design by Employer (assist by Consultant/ Engineer)

ADVANTAGES

Employers intention is reflected well.

Easy to supervise the construction works.

DISADVANTAGES

Higher Design Cost

Responsibility for design and procurement

schedule by Employer
More human and time resources are required
to prepare, multiple tender documents,
manage tender processes and coordinate and
administer contracts

Interfacing between Engineer and Contractors

may be easy, better control of the interfaces

Easy to design change in construction stage

The Contractor is specialist for each Work,

better control of the quality

More control of cash flow, through staging of

the work packages

The potential impacts of changing the design

brief after construction commences are
reduced

Employer bears the responsibility and risk sin

coordinating the Work

Single package (Turnkey Contract)

Advantages & Disadvantages

Detail Design by Contractor

ADVANTAGES

DISADVANTAGES

Early procurement possible

The Contractor is not always specialist for all works

The contractor responsible for all design

and procurement schedule

Higher Construction phase Design costs

The Contractor responsible for all design coordination/interfacing among works.

Cost for Design Delays may included in

Penalty/LD Clauses in Supply Contract

Earliest commencement of the Project

construction is possible

Design work can be made after the contract sign

and possibly delay. Approval of submittals may take
time
Interfacing between PLNs Engineer and Contractors
may be difficult
All design risks taken over by Employer after
approval

Construction stage design changes difficult

Contractor controls cash flow, once the contract is

effective

If the Employers requirements are not clearly and

comprehensively described when the contract is
awarded, the required outcomes may not be
achieved or variations may required, with
associated delay and cost.

Procurement of HEPP Project

Conclusion

Multi Package contract has more benefits on the Employer compared to

Single Package contract, especially for projects with high complexity and
high project cost.
PLN, as the Employer utilizes Multi Package type of contract on Hydro
Electric Power Plant Project, due to:
complexity of the project requires specialist Contractor on each type
of work i.e., Civil
work contractor, Electro-mechanical work
contractor, and Metal work contractor.
HEPP projects has high investment cost and needs a Bidder with a high
financial capability (in case of Single Package applied), therefore Multi
Package type of contract allows many Bidders to join the tender
For Jatigede HEPP, the Single Package Contract is applied due to:
Most scopes of Civil Works has been done by PU Ministry as the
Owner of Jatigede Dam (less scopes of civil work by PLN)
Acceleration of the project, so the COD target on 2015 can be
achieved

Thank you