PLN negotiations with Paiton I show progress
Saturday, January 13 2001 - 05:00 AM WIB
Negotiations between state electricity company PLN and developers of Paiton I power project in East Java have been progressing well and both parties have agreed to change the status of the initial agreement related to the contracts given to the giant power plant. Kompas reported on Saturday.
PLN president Kuntoro Mangkusubroto said at his office on Friday, the developers of Paiton I and the electricity company agreed in June to change the status of the interim agreement related to the pricing of the power supply from the power plant to a long-term agreement.
The latest agreement would last for six months before the two parties further progressed with a final agreement, he added.
PLN has demanded the developer of Paiton I, which operates a giant power plant in East Java to lower the price of its electricity.
Kuntoro said basically Paiton I had agreed to meet the demand but he refused to elaborate how much the new price for the electricity supplied from the giant power plant.
Kuntoro, however, said that issues related to the U.S- government insurance company Overseas Private Investment Corporation's (OPIC's) demand to PLN to pay insurance claim had not run smoothly.
He said that the insurance claim payment still impede the negotiation process with Paiton I. (*)