PLN to fine contractors delaying projects

Antara News, Thursday, November 19, 2009 17:24 WIB

Jakarta (ANTARA News) - State-owned electricity company PLN will fine contractors delaying the completion of their projects under the 10,000 megawatt (MW) power plant projects, a PLN director said.

PLN`s director for strategic construction affairs Agung Nugroho said here on Thursday that the fine would be imposed on contractors who could not show acceptable reasons of the delay.

"The fine has been stipulated in the contracts," he said.

He said that the fine amounts up to five percent of the total contract value, which comes to one per mill per day.

In the meantime, contractors could also lodge a complaint if PLN delayed payments.

PLN estimated that only about 915 MW of the projected 1,890 MW under the 10,000 MW mega project crash program would be completed at the end of this year.