SMART APPROACH TO DETERMINE SOLUTION OF COAL QUALITY DISCREPANCY IN COAL-FIRED POWER PLANT PROJECT UNDER BINDING PROJECT FINANCE SCHEME (CASE STUDY: PT SEMANGAT BERJUANG TERUS)

• Main Author: Iman Ramadhan, Matiinu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63494
• Institution: Institut Teknologi Bandung

The research aims to determine the best decision that shall be made in order to mitigate the impact that caused by the coal quality non-conformity with the coal supply agreement during commissioning stage towards the coal-fired power plant project development that has been delayed. Since the development of the power plant is made based on the project finance scheme, the non-conformity of coal quality in the Coal Supply Agreement (CSA) is affecting the eligibility of PT Semangat Berjuang Terus (PT SBT) to obtain the remaining loans to complete the construction of the project. On the other side, the coal quality discrepancy cause Contractor which cooperated with PT SBT claimed the coal is no longer suitable to comply with the EPC Contract and may risk the availability of the equipment warranty. The Author using the Why-Tree and KT Problem Analysis based on the correspondence among key-personnel in PT SBT and coal suppliers, identify the root cause is the CSA is not applicable to accommodate the common practice of coal supply arrangement for power plant project. Furthermore, using the Simple Multi Attribute Rating Technique (SMART), the Author tried to identify the best alternative decision among (1) maintain right under CSA and ask coal suppliers to improve their coal quality, (2) find other coal suppliers, (3) negotiate with Contractor to accept the available coal from initial coal suppliers, (4) amend the CSA to adjust certain coal specification to avoid event of default, and (5) request Lenders waiver to utilize the available coal that acceptable by Contractor despite the event of default under CSA documents. Based on the SMART analysis method involving key persons from the PT SBT which comes from technical, finance, legal, procurement, and operation side, requesting Lenders waiver to utilize the available coal that acceptable by Contractor, despite the event of default under CSA, is the best option to maintain the construction progress and schedule, later on, PT SBT shall amend the CSA in order to mitigate the event of default which occurred because the coal quality will never meet the contract requirement if it remains as it is.