PLN lawyers working on revision of OPIC claim payment clauses

Lawyer representing state electricity company PT PLN are currently negotiating with the Overseas Private Investment Corporation (OPIC) of the United States over some clauses in the definitive agreement signed late last month by then caretaker finance minister Rizal Ramli.

An informed source said that the negotiations, with PLN represented by its lawyer in New York, would likely be able to revise some clauses, as they were all burdening the Indonesian government.

"The OPIC problems are currently handled by PLN lawyer in New York. And I think the additional clauses that burden the government could still be revised. The process of the negotiations is currently underway intensively," the source said.

Meanwhile, the House of Representatives' Commission IX deputy chairman Faisal Baasir said that the commission would summon Rizal Ramli over his signing of the agreement over the payment of OPIC claim totaling US$260 million.

OPIC claim arises following PLN's lost in the international arbitration panel to MidAmerican Energy over the cancellation of two geothermal power plants, Dieng and Patuha.

Faisal said that some clauses in the definitive agreement had breached terms sheet signed earlier by Rizal's predecessor Prijadi Praptosuhardjo. And some important elements in the term sheet were not included in the definitive agreement, including the clause that transfer the obligation into the Paris Club scheme. (*)