El Salvador's LaGeo Ruling will be Known in January

The International Chamber of Commerce will communicate its ruling on the arbitration trial filed by Enel for $120 million.

Tuesday, September 1, 2009

The complaint filed by Italian company Enel in October 2008 is based on noncompliance by the Salvadoran government with its commitment of handing over shares of company LaGeo.

"Nicolás Salume, president of CEL, informed he has been cited by the International Commerce Chamber for January 10, date when the entity will communicate its ruling on the case", published La Prensa Gráfica in its website.

More on this topic

Dispute Over Geothermal La Geo Heats Up Again

March 2012

Two Salvadoran government agencies are insisting on not giving the majority shares in the La Geo generator to Italy's Enel, despite a court of international arbitration ruling against them.

Inversiones Energéticas (INE) and Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) have again refused to give the Italian company Enel Green Power a majority stake in the geothermal company La Geo, despite a ruling by an international body against them.

Arbitration Favors Italian ENEL Over Salvadoran CEL

July 2011

The decision means that ENEL will be able to capitalize the geothermal GEO and become the majority shareholder in the business it maintains with the Executive Hydroelectric Commission of the Lempa River (CEL).

According to an article in Elsalvador.com, ENEL had sued its partner for breach of contract in November 2008 because CEL had blocked a $100 million investment, which meant that ENEL went from having just over 36% the company's shares to almost 53%. "The contract, signed in 2002, provides that Enel has the right to capitalize on their investments, that is to say, investments in La Geo are transformed immediately into shares."

Enel sues Salvadoran Government for $120 million

October 2008

The case was presented before an international tribunal in France, which the parties had established to settle conflicts that might arise in the preparation of the LaGeo.

Italian company, Enel, which partnered with the Salvadoran government in the operation of the LaGeo geothermic electric generating plant, took the government to court internationally for $120 million for not allowing it to hold the majority of shares that corresponds to the investments carried out, based on the contract between the two parties.

El Salvador: Italians denied majority interest in geothermal generator

June 2008

The Executive Hydroelectric Commission for the Lempa River (CEL) repeated that it will not allow the Italian company Enel to hold the majority of shares in LaGeo CEL and Enel are partners.

Enel has been seeking to increase its participation in LaGeo since 2004, but CEL has blocked it.

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