Since litigation began in 2008 regarding the funding of LaGeo, investment plans in El Salvador have ben stalled, but are now coming back into effect.
An article in Laprensagrafica reports that the company Enel will invest $127 million in El Salvador next year as part of the original plan which was based on an agreement with shareholders that the Italian company would provide more capital, in exchange for just over 50% of the shares of the geothermal company LaGeo. This investment plan has been frozen since 2008 after ENEL began arbitration proceedings against ENEL Investment Energy (INE) and the Lempa River Hydroelectric Executive (CEL) because they wouldnt allow the funding.
Cenérgica is planning to build in El Salvador a coal power generation plant, which would produce about 150 megawatts.
However, according to Ricardo Hernandez, CEO of Cenérgica, execution of the project planned by the company IC Power, part of Israel Corporation Limited (IC) will depend on the suitability of the tender conditions for the contract for the long-term supply of 350 MW .
This is the sum that the distributors intend to invest in improving service delivery in 2012, which includes the construction of two new substations.
The AES in El Salvador invested a total of $26.3 million in 2011 on improving the quality of electricity service, and this year, plans to invest about $24 million, including making two new substations.
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