SEMARANG STEAM POWER STATION

PROJECT IS 92% COMPLETE AS OF 3/1/78. THE FRENCH FUNDED SUBMARINE PIPELINE TO BRING OIL TO THE PLANT FUEL TANKS IS ONLY 15% COMPLETE. START-UP FOR 50 MW UNIT NO. 1 IS NOW SCHEDULED FOR 5/1/78, AND NO. 2 FOR 2 WEEKS LATER. BLACK & VEATCH INTERNATIONAL (BVI), PROJECT ENGINEER, HAS A RATHER POOR WORKING RELATIONSHIP WITH MWK-BLACK, PROJECT CONTRACTOR. BVI CONSISTENTLY CLAIMED THAT MWK HAD INADEQUATE EQUIQMENT, SUPERVISION, AND STAFF. DELAYS IN CONSTRUCTION WERE CAUSED BY A LATE START, EQUIPMENT BREAK-DOWN, VERY POOR CLEARANCE THROUGH CUSTOMS, AND SHORTAGE OF PARTS. THE SLIPPAGE EXPERIENCED WAS AVERAGE FOR THIS TYPE OF PROJECT. WHILE MUCH OF THE DELAY ON THIS PROJECT WAS CAUSED BY CONTRACTOR MANAGEMENT, THE RESPONSIBILITY OF THE ENGINEER CANNOT BE OVERLOOKED. AS SUPERVISOR OVER CONSTRUCTION, BVI SHOULD HAVE PRESSURED THE CONTRACTOR TO GET PROPER PERSONNEL AND EQUIPMENT ON THE JOB. ALSO, AID"S DECISION TO HOLD UP THE PROJECT TO MAKE A GENERATION STUDY AFTER BEGINNING OF TENDERING WAS A MISTAKE. BY THE TIME AID GAVE PERMISSION TO RESUME NEGOTIATIONS ON THE EQUIPMENT TENDERS IN 4/74, THE FULL EFFECT OF THE ENERGY CRISIS HAD ERUPTED. THIS RESULTED IN A 5-MONTH DELAY AND A JUMP IN COSTS. THE PLANT IS TO SERVICE 2 RELATED USAID PROJECTS: THE KETENGER AND TUNTANG ELECTRICAL DISTRIBUTION SYSTEMS. BOTH ARE COMPLETE SO FAR AS THE USAID LOANS ARE CONCERNED, BUT SERVICE CONNECTIONS (TO BE FINANCED BY PLN LOCAL BUDGET) WERE HELD UP DUE TO LACK OF FUNDS. CONSEQUENTLY, ONLY A FRACTION OF THE LOAD IS GOING TO BE AVAILABLE FOR PERFORMANCE TESTS WHEN THE PLANT IS FIRST OPERATED. HAD USAID FUNDED THE CONNECTION/CONVERSION PHASE OF THE DISTRIBUTION PROJECTS, THE SEMARANG PLANT, WHICH REPRESENTS AN INVESTMENT OF $40,000,000, WOULD NOW HAVE THE LOAD THAT WILL TAKE ANOTHER YEAR OR TWO TO CONNECT. THERE WILL BE SUFFICIENT LOAD TO OPERATE THE PLANT EFFICIENTLY (USING ONE UNIT AS STAND-BY OR SPINNING RESERVE) UNTIL THE DELAYED LOADS ARE REALIZED. THE WORLD BANK IS FUNDING A THIRD, 200 MW GENERATOR WITH THE NECESSARY PLANT MODIFICATIONS. AN EVALUATION SHOULD BE CONDUCTED IN 2 YEARS TO DETERMINE EFFECT ON EMPLOYMENT.