LaGeo Litigation Continues

After the last judgment which was unfavorable to El Salvador, officials have announced the continuation of the legal battle against Enel.

Friday, January 11, 2013

Representatives from the Executive Hydroelectric Commission of the Lempa River (CEL) reported that they will abide by the decision of the Parisian Court of Appeals which means that the Italian company ENEL can capitalize the geothermal company LaGeo and become the majority shareholder in the company.

"It is the duty of all public officials to exhaust every possible option and, in this case, there are still resources that can be used because a final point on this issue has not yet been reached", said Samour Leopold, president Executive Hydroelectric Commission of the Lempa River (CEL) to the media.

Velazco Sury writes in that, "For the case, the International Covenant on Economic United Nations is being utilized, which ‘guarantees to everybody the exclusive use of the wealth and subsoil of the state’ according to Juan Pablo Cordova, CEL’s legal advisor. In a similar manner, the Universal Law of Peoples Rights states that: ‘everyone has an exclusive right to their own wealth and natural resources’, added the official."

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More on this topic

New Geothermal Well in El Salvador

May 2013

LaGeo could exploit geothermal energy in a new well located in San Vicente, generating 30 to 40 megawatts.

The company LaGeo invested about $24 million in the exploration which led to the discovery of the new geothermal source.

As outlined in an article in, the Executive Hydroelectric Commission of the Lempa River (CEL), a partner in the LA GEO which belongs to the Italian company Enel, states that "a possible plant could generate more than $37 million in annual revenues for the company."

Funes Denounces Abnormalities in ENEL Contract

January 2013

The President of El Salvador has expressed suspicions that the original contract with the Italian company was changed "in the dark" by government officials.

The president referred to the subject in his radio program last Saturday, saying, "I've asked a group of lawyers to study the documents surrounding all investments with the Italian shareholders and it will be these specialists who might be able to shed a light on this illegal act, including even asking the Attorney General's Office to establish whether criminal liability be established in the future. "

El Salvador Loses Appeal Against Enel

January 2013

The decision of the Paris Court of Appeals means that ENEL can become the majority shareholder in the geothermal company La Geo.

This new resolution validates the verdict of the International Chamber of Commerce (ICC)’s Court of Arbitration, issued in July 2011.

According to "In a note sent to the National Stock Market Commission (CNMV), Enel’s renewables subsidiary reports that the French court "had rejected Ine’s appeal to override the award in its favor, confirming that the trial was conducted fairly," according to the news agency Europa Press.

El Salvador To Appeal LaGeo Ruling

July 2011

CEL has filed a motion to quash the ruling that would allow Enel to have a majority stake in LaGeo geothermal plant.

Tóchez Irving, president of the Commission of the Lempa River Hydroelectric Executive, said: "It is inappropriate to put a country’s strategic resource, such as a geothermal plant, into private hands," when presenting the proceedings before the court of appeals in Paris, France.