After the last judgment which was unfavorable to El Salvador, officials have announced the continuation of the legal battle against Enel.
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.
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 Elsalvador.com: "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.
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.
The way that the government handles the arbitration failure at the International Chamber of Commerce on the La Geo case could dictate the success or failure of state-business partnerships.
The private-public scheme has been promoted recently by the Salvadoran government for the implementation of large public infrastructure projects because they can free the state from the significant investments that such works require.
The "Incoterms", or International Commerce Terms, were modified to better reflect modern practices and avoid ambiguity.
The amendments were announced yesterday in Guatemala by the International Chamber of Commerce, who said that these changes “make obligations of buyers and sellers more clear. For example, the terms of FOB (Free On Board), CFR (Cost and Freight) and CIF (Cost Insurance and Freight) reference to the ship's rail and port of delivery has been omitted for delivery of the goods on board. "
The International Chamber of Commerce will communicate its ruling on the arbitration trial filed by Enel for $120 million.
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.
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.
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