ZAGREB, June 11 (Hina) - Croatia's contract with United States company Enron on the construction of the Jertovec thermoelectric power plant has been annulled. It has been agreed however Enron retains the right to build the plant in
Croatia, but according to a new, open market concept, a Croatian official said on Sunday. First Deputy Prime Minister Goran Granic spoke to reporters upon returning from Houston in the United States, where a Croatian delegation held two-day negotiations with Enron's leadership. The U.S. company and Croatia's power utility company HEP had signed two contracts last year. The one on the construction of Jertovec has been annulled, while the other, on the delivery and sale of electricity to HEP has been altered, said Granic. In Houston, the Croatian government wanted to outline a plan for the reform of the Croatian power system and prove the contract with Enron
ZAGREB, June 11 (Hina) - Croatia's contract with United States
company Enron on the construction of the Jertovec thermoelectric
power plant has been annulled. It has been agreed however Enron
retains the right to build the plant in Croatia, but according to a
new, open market concept, a Croatian official said on Sunday.
First Deputy Prime Minister Goran Granic spoke to reporters upon
returning from Houston in the United States, where a Croatian
delegation held two-day negotiations with Enron's leadership.
The U.S. company and Croatia's power utility company HEP had signed
two contracts last year. The one on the construction of Jertovec has
been annulled, while the other, on the delivery and sale of
electricity to HEP has been altered, said Granic.
In Houston, the Croatian government wanted to outline a plan for the
reform of the Croatian power system and prove the contract with
Enron on the construction of Jertovec was an obstacle to its
implementation, Granic said, adding the U.S. company was
understanding and the contract annulled.
It has been agreed Enron will keep the right to build the power plant
in Croatia, but according to a new concept, that of the open market,
without guarantees on the quantity and price of electricity.
Granic estimates it will take Croatia two years to carry out its
power system reform. Enron will then have three months to say
whether it wants to build the plant in Jertovec or on another
location in Osijek. Enron will have five years to complete
construction.
In the meantime, HEP will purchase electricity from Enron under a
somewhat altered contract. The existing contract, under which one
kWh costs about 0.2 kuna, will be valid until the end of the year.
Over the next 18 months, HEP will purchase 60 percent more
electricity at a higher price, about 0.3 kuna per kWh.
This is the only concession the Croatian delegation has made to
Enron, in order to partly compensate for the costs of three years of
negotiations with the former Croatian government on the
construction of Jertovec. An agreement in principle has been
reached to that effect and will be officially verified over the next
month.
According to Granic, solutions acceptable to both sides have been
arrived at in Houston. For Croatia, this form of cooperation is
considerably better than the past one, he asserted.
(hina) ha