Preliminary Agreement Between El Salvador and Enel Green Power

The Attorney General Prosecutor's Office has announced that the government and the Italian company Enel Green Power have reached an agreement to end the conflict over the ownership structure of LaGeo.

Monday, December 8, 2014

From a statement issued by the Attorney General of the Republic of El Salvador (FGR):

Washington, DC The State of El Salvador and the Italian company ENEL Green Power have reached a framework agreement with a comprehensive solution to the existing dispute over the ownership structure of the company LAGEO SA de CV.

During an intense day of work the high level teams from both sides harmonized solutions that lead to a satisfactory solution and adhered to the law in respect to the laws of El Salvador. With this an end has been put to a dispute which has gone on for more than eight years.



More on this topic

El Salvador: End of Legal Dispute with Enel Green Power

September 2015

The settlement was made through the purchase of the Salvadoran Government for $280 million stake in geothermal LaGeo which owns the Italian company.

From a statement issued by the Executive Hydroelectric Commission of the Lempa River:

While in El Salvador preparations are being made to celebrate the country's independence, in Washington representatives of the Salvadoran government and the Italian company ENEL GREEN POWER are putting and an end to a long running dispute. The agreement allows the Salvadoran State to recover the total shares of LaGeo that had been held by the Italian company.

Extra Judicial Dialogue Between El Salvador and ENEL

November 2014

At the request of the parties, arbitration and dialogue has been suspended for 30 days in order to reach an agreement over the shareholding structure of the company LaGeo.

From a statement issued by the Government of El Salvador:

Talks to find solutions to disputes between the State of El Salvador and the Italian company ENEL Green Power, over the ownership structure of the company LAGEO SA, de CV, started today in Washington, DC, with a meeting taking place on the premises of the International Centre for Settlement of Investment Disputes (ICSID), which is the forum for arbitration and conciliation of the World Bank Group.

El Salvador: Favorable Ruling for Enel Green Power

September 2014

As expected, the French Supreme Court has ruled in favor of the Italian company, in its attempt to increase its stake in the geothermal station LaGeo.

In May 2011 the International Chamber of Commerce (ICC) recognized the right of Enel Green Power to increase their investments in geothermal energy in El Salvador and capitalize on these investments through the subscription of new shares in LaGeo.

Lawsuit Against El Salvador for Investment in LAGEO

August 2013

The Italian consortium Enel has filed a case against the Salvadoran State with the ICSID over a dispute on equity interest in the geothermal plant.

The case was filed with the International Centre for Settlement of Investment Disputes (ICSID).

The lawsuit, according to the company, is due to the government trying to be more involved in LaGeo, and also because they believe they have been denied their legitimate rights.

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