Fenosa refuses to sign memorandum with Nicaragua

Spain's chief diplomat, Miguel Ángel Moratinos, has personally asked his counterpart in Nicaragua, Samuel Santos López, for "secure justice" and "guarantees" for Spanish companies with operations in Nicaragua. The request was made after Madrid was made aware that Unión Fenosa refused to sign a memorandum of intent with the government of Nicaragua.

Tuesday, May 6, 2008

In a note to Santos published in a press release on the web site of the Spanish Minister of Foreign Affairs and Cooperation, Moratinos said, "Spain is the second largest foreign investor in Nicaragua, after the United States.
Santos made a one-day trip to Madrid as part of a tour of several European countries. The Nicaraguan chancellor said his talks with Moratinos were "frank, quiet and fraternal but objective." He promised that Spain would maintain the same level of cooperation with Nicaragua, and would increase the number of projects essential for the nation's development.
Moments before the meeting began, Unión Fenosa announced that it would not sign a memorandum of intent with Nicaragua, citing last-minute changes the government had made in the draft memorandum.
Jorge Katín, Fenosa's Manager of Communications, said it's still possible that a memorandum will be signed between, but the case is being reviewed by Fenosa's Spanish headquarters.

More on this topic

Nicaragua on Board of Gas Natural - Fenosa

June 2011

The government has announced that it has taken a seat on the board of the power distribution company Gas Natural-Fenosa, a subsidiary of Union Fenosa.

The Nicaraguan government made the announcement three years after acquiring 16% of the subsidiary’s shares.

According to an article in Elnuevodiario.com, "The Nicaraguan Parliament recently ratified a memorandum of understanding signed three years ago between the Government and Union Fenosa, whereby the distributor gave the state 16% of its shares in exchange for a debt of more than 11 million of dollars. "

Nicaragua buries hatchet in US$10.2 million deal with Fenosa

May 2008

The Nicaraguan government and Spain's Unión Fenosa closed a stormy chapter in their relationship with a deal in which the government is to take a 16 percent stake in Fenosa.

In return the government will write off the US$10.2 million debt that it is owed by Fenosa, the country's leading distributor of electricity.

The Government of Nicaragua hopes that within a week it will sign an agreement to by 16 per cent of Unión Fenosa

April 2008

The Government of Nicaragua hopes to sign a memorandum of understanding before month-end with Union Fenosa to acquire 16 percent of the shares of its affiliate in Nicaragua, Emilio Rappaccioli, Minister of Energy and Mines, has said.

The ministry said that the government of Daniel Ortega wants to have a representative on the board of directors who will be more than a figurehead.

Union Fenosa says it is waiting for Nicaragua to sign the purchase

April 2008

The president of Union Fenosa, Pedro López Jiménez, said today in Madrid that his company is waiting for the Nicaraguan government to sign the agreement to close the deal for the sale of 16 per cent of its electrical business in Nicaragua.

"The situation is that there is an agreement prepared that lacks only the signature," López said following a shareholders meeting.

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