On Monday, representatives of El Salvador and Enel Green Power ratified an agreement allowing the government of El Salvador to regain full control of the geothermal company LaGeo. As part of the agreement, the government will buy the 36.2% stake of the Italian company in geothermal company LaGeo for $280 million.
The contract was ratified by representatives of both parties in Washington, DC and will give the government of El Salvador full control of LaGeo, one of the largest geothermal companies in Central America. LaGeo was a joint venture between Enel Green Power and state-owned outfit Inversiones Energeticas S.A. de C.V.
The ratification was made ??at the International Centre for Settlement of Investment Disputes (ICSID) with the participation of the Attorney General’s Office, the Secretary for Legislative and Legal Matters of the Presidency and the president of CEL Group, the company said.
“The most appropriate for the interests of Salvadorans was looking for a reasonable deal, because we had a series of investment projects totally paralyzed,” said David López Villafuerte, president of CEL Group. “After that arrangement, investments of $500 million has already been earmarked for further development in other areas,” he added.
The legal dispute about LaGeo started eight years ago after the Salvadoran government disputed the legality of public-private contract between CEL and Enel LaGeo.
Source: El Financiero