The Denpasar Municipal Administration has ordered the Environment and Public Hygiene Service (Dinas Lingkungan Hidup dan kebersihan Kota Denpasar – DLHK) to issue formal written orders to terminate the management contracts with PT Bali Citra Metro Plasma Power (Bali CMPP) for two Coordinated Waste Disposal Plants (TPST) in Kesiman Kertalangu at Padangsambian Kaja.
As reported by BeritaBali.com and NusaBali.com, the termination order issued by Ida Bagus Putra Wirabawa, the Contracts Officer of DLHK-Denpasar, means that Bali CMPP’s management of the two TPSTs will end effective Thursday, September 19, 2024.
The termination letter cum firing of Bali CMPP was issued after the management company failed to address numerous shortcomings in plant operations identified in three formal letters sent by the Denpasar Municipality. On the most basic level, Bali CMPP is determined to be chronically incapable of meeting the waste disposal targets contractually stipulated and unable to control the noxious odors emanating from the plants and permeating the surrounding neighborhoods.
Putra Wirabawa said: “Since the beginning, due to operational constraints, contractually committed operational targets remain unmet; this was underlined in three separate warning letters. As a result, on 19 September, a notice of termination was issued. This dramatic step was coordinated with the Coordinating Ministry for Maritime Affairs and Investment, LKPP (Policy Institute for Procurement of Goods & Service), NPMC ISWMP (National Project Management Consultant Team), and the Mayor of Denpasar.”
The termination of the contract will take effect on 03 October 2024.
The termination of the contract will not eliminate P.T. Bali CMPP’s obligation to pay fines for failures and delays in the TPST operating goals. With the termination of the contract, P.T. Bali CMPP is now obliged to move all the machines in the Kesiman Kertalangu and Padangsambian Kaja TPSTs.
The Denpasar Municipal Administration now faces the challenge of seeking a new investor to manage and operate the two TPSTs.
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