Celso Marranzini, a former president of the board of directors of the Corporaci?n Dominicana de Electricidad, the state electricity utility, told El Siglo newspaper that the partners in the Puerto Plata Smith-Enron power plant have major differences among themselves over the contract signed with the state. Marranzini, who is also president of the National Council of Private Enterprise (CONEP) said that the two entities have a legal suit going on at present over the contract. Enron International favors the revision of the contract, Smith wants it to stay as is. The contract is considered unfair as well as onerous to the interests of the Dominican state and people. It is also a thorn in future privatization efforts as privileged conditions granted are way over market conditions. Marranzini explains that Enron International inherited the contract that Smith signed with the management of the CDE at the time. He said Enron International executives consider it illogical that it remain as signed and favor the writing up of a new contract. Marranzini says, "The relationship with the executives of Enron has been one with businessmen, that is, sit down and discuss the contract to achieve a win-win negotiation. They do not seek under the table negotiations, " he explained. He said that aside from the executives of Smith, the past administration of the CDE that signed the contract is responsible, as they were aware the contract contained articles that were highly disadvantageous for the country. Marranzini explained that the unfair conditions has brought the CDE to not be able to meet the contract stipulations and Smith has taken the case to arbitration seeking to pressure the state to pay the arrears. The international arbitrage court has not yet reached a decision.
