The state electricity utility, the Corporaci?n Dominicana de Electricidad and Smith-Enron, the private consortium that built and operates a major power plant in Puerto Plata, have signed a memorandum covering points under dispute. The Fern?ndez administration disputes the unfair and privileged conditions awarded to the company by the Balaguer administration under which the power plant was installed. Smith-Enron Cogeneration Limited Partnership released a communiqu? yesterday indicating that they have agreed among themselves over issues that had been debated at the arbitrage court of the International Chamber of Commerce. The agreement depends on the CDE making payments and its receiving the approval of international financial institutions. The CDE and Smith-Enron have signed a "Memorandum de Entendimiento" that allows for the revision of the Contract of Purchase and Sale of Energy with the company. According to Smith-Enron, the CDE has agreed to make payments of "all the sums not under discussion and owed today" so that the company can cover its own debts. "We understand that this agreement, achieved prior to the process for the capitalization of the CDE sends a positive sign to all companies that participate in the process and to investors in general," says Smith-Enron. The company believes that the capitalization process should contribute in the long range to resolve the power needs of the country. Kevin Manning has head negotiations for Smith-Enron seeking to reach an agreement with the government that would be satisfactory to both parts.
