Nordic energy company Vattenfall announced yesterday that it has sold its ownership interests in South America to US company NRG Energy, Inc. in order to focus on its core business in the north European market.
Nordic Power Invest AB (NPI), a Vattenfall subsidiary, sold shares in two companies in Bolivia, Compania Boliviana de Energia Electrica SA – Bolivian Power Company Ltd. (Cobee), and Compania Electrica Central Bulo Bulo S.A., as well as one company located in Brazil, Itiquira Energetica S.A.
As part of the transaction, NRG also has agreed to purchase NPI’s interests in two Peruvian assets, Cahua S.A. and Cementos Norte Pacasmayo (CNP) S.A., which comprise 45 MW of hydroelectric generation and 66 MW of hydroelectric and diesel generation, respectively. NPI owns 100 per cent of CNP and approximately 60 per cent of Cahua. Closing on the Peruvian assets is subject to the fulfilment of certain conditions set forth in the agreement.
Cobee, a 220 MW predominately hydroelectric project, is the second largest electric generator in Bolivia. Bulo Bulo is an 88 MW natural gas-fired facility in Bolivia, and Itiquira is a 156 MW hydroelectric project in the advanced stage of construction in Brazil. Full commercial operation of Itiquira is expected in March 2002.
NPI had been a 50 per cent partner with NRG in Cobee, Bulo Bulo and Itiquira through their joint venture vehicle, Tosli Investments N.V.
“These divestments follow Vattenfall’s recent successful acquisitions in Germany and its strategy to fully focus and concentrate on the north European market”, says Gunnar Vallin of Vattenfall AB.