ZAGREB, Sept 11 (Hina) - Croatia's public company - the Croatian Power Industry (HEP) - and a U.S. firm, Enron, will sign five agreements on Wednesday (September 13) and thus regulate their relations in a new manner. The signing of
the five new agreements would annul obligations which have ensued from contracts which the HEP and Enron signed in June last year. Following negotiations conducted in past months, the HEP management chairman Ivo Covic and the Vice-President of Enron Europe Ltd., Eric Shaw, will sign a contract on the consensual cancellation of the contract of the construction of the thermo-electric power plant Jertovec, a contract on the consensual cancellation of a contract on the sale and purchase of power supplies, a new contract on the sale and purchase of power supplies, a new contract on the right to the construction of a thermo-electric power plant at Jertovec (outside Zagreb),
ZAGREB, Sept 11 (Hina) - Croatia's public company - the Croatian
Power Industry (HEP) - and a U.S. firm, Enron, will sign five
agreements on Wednesday (September 13) and thus regulate their
relations in a new manner.
The signing of the five new agreements would annul obligations
which have ensued from contracts which the HEP and Enron signed in
June last year.
Following negotiations conducted in past months, the HEP
management chairman Ivo Covic and the Vice-President of Enron
Europe Ltd., Eric Shaw, will sign a contract on the consensual
cancellation of the contract of the construction of the thermo-
electric power plant Jertovec, a contract on the consensual
cancellation of a contract on the sale and purchase of power
supplies, a new contract on the sale and purchase of power supplies,
a new contract on the right to the construction of a thermo-electric
power plant at Jertovec (outside Zagreb), and a contract on
cooperation between these two companies.
The two parties agreed on the signing of new documents on 8 August
this year when Covic and Shaw signed a document endorsing the final
texts of the agreements.
After that the HEP Supervisory Board and the Assembly gave their
consent to the deal, while on 24 August the Croatian Government
endorsed a report on the contracts between the HEP and Enron Europe
Ltd.
More than five years ago the HEP and Enron commenced negotiations on
the construction of a gas power generating plant at Jertovec, and in
June last year in Dubrovnik they signed a contract on the financing,
building and use of that power plant. At the beginning of this year,
however, expert and political circles as well as the public began to
speak of political reasons behind the conclusion of the Dubrovnik
document and of its negative impact on Croatia, particularly in
relation to reforms which should be launched on the Croatian power
supplies market.
In May this year HEP and Enron representatives held talks in Zagreb
on the resumption of the implementation of the contracts, and on 9
June Croatian Government officials and Enron representatives
signed a protocol on changes of the contracts, in Houston.
A new contract should have been signed within 30 days after that,
but Croatian and U.S. experts failed to harmonise the text by 10
July. Subsequently the negotiations resumed, and the two parties
agreed on the final texts on 8 August.
After the HEP Supervisory Board and Assembly and the Croatian
Government okayed the deal, prerequisites were created for the
signing of the new contracts.
(hina) jn ms