The Paiton Debacle - coal fired power plant
Posted on December 12 2003 |
“ one of the most expensive power deals of the decade, anywhere”
• 1995 : US$ 2.5 billion finance package for Paiton I covered by guarantees and loans from JEXIM, MITI, US-EXIM and OPIC
• 1996 : US$ 1.7 billion finance package for Paiton II provided by US-EXIM, German Hermes, KfW and C&L Deutsche Revision
• coal-supply monopoly 30%-40% higher price than existing market price
• electricity price US$ 8.6 cent per kWH 32% highe than price in Indonesia and elsewhere
Dispute between PLN and Mission-GE after Suharto step-down:
• pressure from ECAs, Japan, US and German government and CGI (Indonesian donor countries) no new debt!!
• Wahid withdrew plan to sue Mission-GE honored the contract and paid the compensation during the dispute period
• Agreement: US$ 43 cent per kWH,
• AND new power plant
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