PLN to pay out arrears totaling $69m through December
Friday, October 26 2001 - 02:34 AM WIB
A source at PLN said PLN would pay Paiton Energy $21 million in October, then $23 million in November and $25 million in December.
Initially, PLN had wanted to pay only $21 million every month till December, but Paiton rejected, and they agreed to the above scenario.
With the arrears payment totaling $69 million through December, it means that PLN bought electricity from Paiton at a price of 4 U.S. cents per kilowatt-hour.
That arrears payment was contained in the third phase of interim agreement between PLN and Paiton, effective for three months from October through December.
It was a continuation from the second interim agreement that was valid from July through September, in which PLN owed Paiton a total of $88.1 million in arrears.
In the first interim agreement between PLN and Paiton, that came into effect from January through June, 2001, in which PLN owed Paiton $187 million in arrears.
Before that, PLN and Paiton also had an agreement that was valid from March through December 2000, in which PLN owed Paiton $530 million.
Thus, as of the end of September, PLN's total obligation to Paiton reached $805 million.
Currently, PLN and Paiton is negotiating a long-term sale-purchase agreement, to settle PLN's arrears. One scenario is that PLN would be required to pay Paiton $3 million per month for a period of 30 years, with electricity price of 4.4 cents per kilowatt-hour.
The second scenario is that PLN would be obliged to pay Paiton $4 million for 30 years, with electricity price set at 4.2 cents per kilowatt-hour.
Paiton is owned by Edison Mission Energy of the United States, General Electric Capital Corporation of the United States and Japan's Mitsui & Co, and local company Batu Hitam Perkasa. (*)