The Salvadoran electricity distributor will relaunch the tender that was unsuccessful in March, having only received a single bid which was above the established reference price.
In March the company EMCE El Salvador was the only bidder to submit a proposal in the tender, with a price of $148.58 per megawatt (MW) hour, but the Superintendent of Electricity and Communications (SIGET) had set the price cap at $136.61 MW per hour.
Private investment remains at minimum levels in the country, due to lack of clear long term regulations.
Alberto Triulzi, executive president of Nejapa Power, stated that “all over the world, companies are investing in energy, except in El Salvador”, and noted that Nejapa Power, Duke Energy, Delsur and Grupo AES are investing everywhere “but in El Salvador”.
CEL, the state owned energy company, will have to pay the U.S. company over $18 million in compensation.
The dispute between both organizations started in 1999, when CEL decided to end an energy procurement contract enacted 5 years earlier with energy generator Nejapa Power. The parties were unable to land satisfactory indemnification terms, so they proceeded to international arbitration.
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