State of Guatemala Sued for $672 Million

The lawsuit was filed by Iberdrola, main shareholder and operator of EEGSA (Empresa Eléctrica de Guatemala, 'Electric Company of Guatemala').

Monday, December 7, 2009

It is the largest in Guatemala's history, and has its root in lack of agreement regarding an energy distribution tax called 'VAD' (Valor Agregado de Distribución), which came into effect on August 2008.

Prensalibre.com reports: "The company demands $336 million, value of its stock before what they call 'indirect expropriation', and another $336 million for what it could stop receiving in 2008-2013 due to changes in VAD".

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Mine Suspension: Arbitration Panel Formed

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The arbitration panel was formed to hear the lawsuit against the State of Guatemala, which was filed because of the suspension of the operations of the El Tambor mine, in San José del Golfo and San Pedro Ayampuc.

After the arbitration claim was filed by the Americans Daniel W.

Lawsuit Between Teco and Guatemala To Be Resolved in 2014

November 2013

For the first quarter of 2014 the Center for International Investment Arbitration could issue a ruling on the suit brought against the Guatemalan State.

This was explained by Silvia Alvarado, director of the National Energy Commission (CNEE).

The company "in 2010 went to the International Centre for Arbitration Relating to Investment Disputes (ICSID) claiming that the State gave an unfair and inequitable treatment by setting the Value Added Distribution (VAD) in 2009 at an amount less than requested by the Empresa Eléctrica de Guatemala S.A. (EEGSA), of which Teco at that time was a shareholder along with the Spanish Iberdrola " reported Elperiodico.com.gt.

State of Guatemala Wins Arbitration Against Iberdrola

August 2012

The International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, has ruled against the claim of the Spanish company Iberdrola against the State of Guatemala.

The lawsuit filed by Iberdrola, a major shareholder and operator of the Empresa Electrica de Guatemala (EEGSA), in late 2009, was due to a disagreement on the rate of Value Added Distribution (VAD), in force since August 2008.

Empresa Electrica de Guatemala Being Sold

October 2010

According to reports, the Spanish utility Iberdrola is in discussions to sell its shares in Empresa Electrica de Guatemala SA (EEGSA) to Colombian company Eléctrica de Medellín (EDM).

Iberdrola's decision would be related to the reduction of tariffs in over 50% approved by the National Energy Commission (CNEE) in June of 2008.

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