PLN, Paiton to sign final deal March 2002

The state-owned electricity company PLN and independent power produer PT Paiton Energy are positive to sign a final agreement in March 2002, according to company president Eddie Widiono.

But he declined to specifically say the price PLN must pay for Paiton?s power.

When asked whether it would be 4.9 U.S. cents per kWh, he said: ?It is still possible to be lower than that.?

He was speaking Tuesday on the sidelines of a hearing session with the parliament energy commission.

Paiton is part of the 27 IPPs which singed agreement with PLN to provide the later with power supply. But the contract was terminated in the wake of 1997 financial crisis. PLN is under pressure to renegotiate the contract particularly the power price as some deemed as too high especially with the sharp decline in the value of the rupiah against the U.S.

PLN has so far only been able to reach agreement with three IPPs.(Amoros)