Nicaragua 'playing with fire' in clashes with Spanish investors

The Nicaraguan government is "playing with fire" in its disputes with two Spanish companies, Unión Fenosa and Grupo Barceló, warned José Escalante, president of the Spain-Nicaragua Chamber of Commerce.

Thursday, May 29, 2008

The government is expected to be sued by Fenosa, the nation's leading distributor of electricity in a dispute over the terms under which the state aims to take a 16 percent stake in the company's equity.
Barceló's Montelimar tourism complex has been embargoed for three weeks in a conflict over the government's claim that the company owes it US$2 million.
Escalante said the government should respect its agreements with foreign investors. If it fails to do so, the whole country will lose out, he added.

More on this topic

Fenosa 'getting ready to sue Nicaragua'

May 2008

Spain's Unión Fenosa, the leading distributor of electricity in Nicaragua, is reported to be planning to sue the government for US$150 million in an international tribunal.

David Castillo, head of the Nicaraguan Energy Institute, said that talks with Fenosa had broken down at the end of last month over the price to be paid by the government toacquire a 16 percent stake in the company.

Barceló insists that it owes Nicaragua nothing

June 2008

Executives from the Grupo Barceló repeated this Thursday that they owe nothing to the State of Nicaragua and refused to make further comments on the lawsuit presented by the government.

The company's legal reprentative, Tomás Delaney, told reporters that they have reviewed the lawsuit sent to the Washington-based International Center for Settlement of Differences Relative to Investments.

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