After Guatemala paid off its debt to Teco Energy, the $15.75 million embargo was lifted, resources that the country had allocated for interest payments from some Eurobond holders.
Arguing that from 2008 to 2013 the Guatemalan National Energy Commission set a maximum amount that electricity distribution companies could charge the user, Teco Energy, a company that was a shareholder of Empresa Electrica de Guatemala, sued the country internationally.
After receiving a ruling opposing the international arbitration disputed with Teco Energy, the New York State Supreme Court ordered the seizure of $15.75 million from Guatemala.
Teco Energy is a company that was a shareholder of Empresa Eléctrica de Guatemala and years ago claimed international arbitration, arguing that from 2008 to 2013 the National Energy Commission set a maximum amount that energy distribution companies could charge the user.
For the first quarter of 2014 the Center for International Investment Arbitration could issue a ruling on the suit brought against the Guatemalan State.
This was explained by Silvia Alvarado, director of the National Energy Commission (CNEE).
The company "in 2010 went to the International Centre for Arbitration Relating to Investment Disputes (ICSID) claiming that the State gave an unfair and inequitable treatment by setting the Value Added Distribution (VAD) in 2009 at an amount less than requested by the Empresa Eléctrica de Guatemala S.A. (EEGSA), of which Teco at that time was a shareholder along with the Spanish Iberdrola " reported Elperiodico.com.gt.
A recent ruling by an international tribunal in a dispute between Guatemala and Iberdrola, sets a precedent against the claims of Teco Energy.
The U.S. Corporation Teco Energy, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued Guatemala before the International Centre for Settlement of Investment Disputes (ICSID), in 2010, claiming economic losses caused by a reduction in the Value Added Distribution implemented by the National Energy Commission in 2008.
At least 10 companies have already acquired the bidding rules ready to present bids on 28 October.
Among the companies interested in bidding is Centrans Energy which operates a wind farm in the Pacaya volcano area, which generates 50 MW and represents an investment of $125 million.
An article in Elperiodico.comgt states "The bidding rules require that at least 60 percent of the 800 MW must be generated by renewable power plants (hydroelectric, wind, solar, etc.) and a maximum of 40 percent for existing plants (bunker, diesel and coal) The traditional power plants can bid for contracts of up to 5 years, compared to the renewables whose contracts can be up to 15 years long."
The U.S. Corporation, a former shareholder of Empresa Eléctrica de Guatemala (EEGSA), sued the country before the ICSID in Washington.
The process is similar in its content to the one initiated by Spanish company Iberdrola (also a former shareholder of EEGSA) in December 2009, before the same institution, the International Center for Settlement of Investment Disputes (ICSID).
Colombian Group EPM acquired 80% stake in Empresa Electrica de Guatemala (EEGSA).
Empresas Publicas de Medellin (EPM), leading provider of public services in Colombia, will expand its presence in Central America.
Sigloxxi.com reports, "The sale, according to EEGSA´s manager, Jorge Alonso, was decided by company shareholders, consisting of firms Iberdrola of Spain, Teco Energy and Electricity of Portugal, although the distributor was unaware of negotiation details.”
Sales summed $21.1 million in the first half of the year, 17% less than the same period of 2008, when $25.4 million were sold.
Statements presented to the U.S. Securities and Exchanges Commission report a $2.5 million reduction in net income, "as a result of the reduction of the Distribution Added Value (VAD), from the sale price...".
From website Siglo XXI: "The report states that income dropped $3.8 million ...
With this transaction, Millicom International Cellular controls 100% of Navega.
Navega was created in 2000 by Comcel which is part of Millicom, the Spanish company Iberdrola, EDP in Portugal and Teco Energy in the US, and it provides data transport services in Guatemala, El Salvador, Honduras and Nicaragua.
Mario Zanotti, Latin America director for the company told El Periódico of Guatemala that with the purchase, “Millicom will be able to ensure the quality and availability of transmission services for its three mobile operators (Tigo in Guatemala, Honduras and El Salvador) and benefit its consumers. It will also meet the growing demand for Internet access and extend broadband services for Third-Generation (3.5G)."
TECO Energy Inc. said earnings at its subsidiary in Guatemala have been cut following actions of a Guatemalan regulatory agency.
As publish in bizjournals.com: "The subsidiary, TECO Guatemala Holdings LLC, has filed notice that it will file an arbitration claim against the Republic of Guatemala under the Dominican-Republic-Central America-United States Free Trade Agreement, or DR-CAFTA, TECO said in a filing with the Securities and Exchange Commission. In July, Guatemala’s National Electric Energy Commission unilaterally reset the distribution tariff for Empresa Eléctrica de Guatemala at levels well below the then existing tariff, the filing said. TECO Guatemala Holdings has a 24 percent interest in Empresa through a joint venture, and the action caused a “significant reduction” in earnings for the joint venture segment, the filing said."