The state-owned company LaGeo plans to invest in its geothermal fields in Chinameca and San Vicente to increase its generation capacity to an additional 80 megawatts.
In order to finance the works, the public company LaGeo, a subsidiary of the Lempa River Hydroelectric Executive Commission (CEL Group), is negotiating a $232 million loan with the World Bank.
In Costa Rica, the state power company will have to pay $112 million to the contractor of the Chucás hydroelectric project, for "additional expenses that it authorized and then refused to recognize."
In the ruling issued by the International Center for Conciliation and Arbitration (CICA), to which the company Enel Green Power Costa Rica appealed to resolve a conflict that originated in 2015 due to an almost $148 millionincrease in the Chucás hydroelectric project, which has not yet been completed, it was established that Instituto Costarricense de Electricidad (ICE) acted with "bad contractual faith".
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.
It has been announced that thirty companies, including Enel Green Power, have expressed interest in participating in the tender to supply natural gas, valued at $800 million.
From a statement issued by the Presidency of El Salvador:
About 30 companies are interested in participating in the tender to find a supplier of gas for power generation in the investment project run by the company Energías del Pacífico, to produce more than 350 megawatts of power, said the Technical and Planning Secretary of the Presidency of the Republic, Roberto Lorenzana.
The Italian company in charge of the 50 MW hydroelectric station Chucás has appealed the fine of $4.6 million imposed due to delays in the construction of the plant.
The hydroelectric project, which is being built in the format of Build, Operate and Transfer (BOT) in Atenas in Alajuela, has been delayed due to "external causes such as landslides caused by geological problems and flooding", explained the company to Crhoy.com .
Despite the agreement signed last December, authorities from the CEL say it reserves the right to activate in civil courts processes to collect compensation for alleged damages.
After ten years of international litigation by the Italian company ENEL for control of the geothermal station Enel Green Power El Salvador, where the Salvadoran State had everything to lose, in December 2014 an agreement was signed at the International Centre for Settlement of Investment Disputes (ICSID) which stated in Article 3 that: "The parties (the Salvadoran State and Enel) have agreed as a condition non precedent of the effects of the Framework Agreement, the final and irrevocable extinction of the civil action of the crime involving Enel Green Power (EGP) and Enel Green Power in El Salvador criminal proceedings number 171-A-2-13 in the Seventh Court of Peace and 133-2013-12 in the Seventh Court of Instruction, both of San Salvador, that will be extended to all natural persons who are accused of crimes in the same instance ... ".
The Italian company Enel Green Power will be selling its stake in the geothermal electricity station LaGeo, which could end to the dispute between the company and the Salvadoran government.
As outlined in an article on Laprensagrafica.com, a transfer of the 36.2% stake belonging to Enel has been valued at $280 million, payable via a trust based on the future flows from LaGeo, an instrument which must be operational before December 15th, 2014.
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.
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.
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.
After a French court judgment affirmed the ruling of the International Chamber of Commerce, the Sanchez Ceren administration has announced that it will continue with litigation against the Italian company.
From a statement by the Presidency of El Salvador:
Government reaffirms commitment to the defense of geothermal resources, assets of the Salvadoran people.
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.
At the request of the three companies interested in the 213 MW work, the deadline for submitting bids has been extended until May 6.
May 6 is the date for receipt of the proposals from the three companies interested in the design, financing, construction and operation of the hydroelectric dam Changuinola II, in the province of Bocas del Toro.
Prensa.com reports: "Interested companies have expressed concern about potential claims that could be brought AES Panama, three years ago they lost the concession to develop Chan II, after which the State, through the National Authority of Public Services, determined that if this entity built the hydroelectric station it would control over 40% of energy generation in the country, which is prohibited by Law 6 of February 3, 1997 which regulates the electricity sector. "
The Changuinola II project has been reopened and on April 25 proposals for its design, financing, construction and operation will be received.
On April 25, the Empresa de Generación Eléctrica (Egesa) will receive proposals from those interested in the design, financing, construction and operation of the hydroelectric station Chan II, which will produce 213.6 MW, fed from waters of the Changuinola River in the province of Bocas del Toro.
Enel Guatemala has been authorized to develop and operate for a period of 50 years, the 137 MW hydroelectric project La Cascata.
The Ministry of Energy and Mines has authorized Enel Guatemala to develop and operate for a period of 50 years, the hydroelectric project La Cascata in Huehuetenango. The project will generate 137 MW using the flow of the river Quisil.
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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