Electra

cancelled

In December 1999, the Government of Cape Verde (GCV) sold a 51% stake of Empresa Publica de Electricidade e Agua (Electra), the national power and water utility, to a consortium led by Electricidade de Portugal (EdP). Electra was created in 1982 to provide power and water services in the country, an island off the coast of Senegal and a former Portuguese colony. In 1999, Electra distributed 166 GWh to 35,250 customers in an area of 4,000 square kilometers. Prior to the partial divestiture, Electra faced shortages of capital and other financing difficulties. Electra had made losses in every year since its formation and there had been no increase in the power tariff since 1985. Accounts receivables had reached US$4.3 million in 1994, more than 60% of which was over a year past due by public agencies. Other factors were low sale price for desalinated water, losses in the distribution networks of both power and water and unsatisfactory accounting procedures. Sanitation services were the responsibility of the municipalities and were limited in scope. EdP held a 60% stake in the corsortium that purchased the 51% stake in Electra while IPE-Aguas de Portugal held a 40% stake. Cape Verde municipalities were granted 15% of the shares and the government retained the remaining 34%. The contract entailed a license to produce electricity and water for 30 years. In addition, a concession agreement was signed granting Electra exclusive distribution rights for 36 years beginning in January 2000. The sale generated US$47.9 million (Euro 45.4 million) for the GCV. The new private operators were also expected to invest part of the proceeds in Electra's infrastructure. The funds were to be used to redevelop the water and electricity supply system in Praia and on the islands of Sal and Sao Vicente. In May 1999, the government of Cape Verde received a loan of US$22.2 million from the World Bank as part of an overall package to help with this restructuring. In 2004, Electra produced 219 GWh of electricity and distributed 147 GWh to 71,243 customers in an area of 4,030 square kilometers. Also in 2004, Electra produced 4.1 million cubic meters of water and distributed 2.8 million cubic meters of water to 25,102 customers. Electra had revenues of €31.7 million and a net loss of €4.4 million in 2004. In 2006 EDP and ADP reduced their stakes in Electra to 20.4% and 13.6%, respectively, by selling some shares to the government. Following the sale the Cape Verde government held a 51% stake in the utility and took back operational control. In May 2008, Electra became fully state owned. EDP and ADP signed an agreement with the Government of Cape Verde to formalize the exit of the capital of Electra. The transaction did not involve any payment by the State. Only after water and transport update is posted on the public site, please put back into the History the next values: 2006 34% and Capasity size 79 (number of connections).