PLN questions govt' commitment to pay OPIC claim

State electricity company PT Perusahaan Listrik Negara (PLN) is questioning the signing of a document by then minister of finance Rizal Ramli and U.S. government representative in Jakarta on July 31 over the payment of US$260 claim from the U.S. Overseas Private Investment Corporation (OPIC), Kompas reported on Monday.

PLN president Eddie Widiono said that what PLN's questioning was not the agreement or the document itself but whether the content of the agreement signed by Rizal Ramli was in accordance with the agreement signed by his predecessor Prijadi Praptosoehardjo.

Eddie explained that when Prijadi was finance minister, there was no definitive agreement on the payment of OPIC claim, that arose following the lost of PLN at the international arbitration body over the cancellation of two geothermal power projects, one in Dieng and the other one in Patuha.

Eddie explained that if the government did disburse the payment, the burden would eventually be directed to PLN, which would then scramble to find financing, including from selling electricity from the 60-megawatt Dieng power plant.

Meanwhile, the secretary general of the Ministry of Finance, Widjanarko, denied over the weekend that his ministry had disbursed the OPIC claim. He said he did not know about the signing of an agreement between Rizal and an American representative, but for sure, he said the payment had not been made as the OPIC claim had not yet been resolved.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the payment of OPIC claim would be pursued through the Paris Club mechanism, namely with three-year grace period and 11 years of installment payment. Therefore, if the agreement was really Purnomo, nevertheless, said the financial matter of OPIC claim was handled by the Ministry of Finance, while his office was taking care of the geothermal power plants themselves, especially the Dieng power plant that had been ready to supply electricity. (*)