Empresa de Distribucion Norte-Sur

cancelled

Union Fenosa Acex (UFACEX) bought 50% of the North-South distribution network (Empresa de Distribucion Sur and Empresa Distribucion Norte) for US$ 211.9 million. The minimum bid for the North was set at $49-million and that for the South was $129.2-million. The two utilities together service a total of 600,000 customers, distribute electric power in over 75% of the country and sold a total of 3,000 GWh of power in 1998 (on an average year basis North sold 2,325 GWh and South 2,775 GWh). Empresa de Distribucion Sur also supplies electric power to much of Santo Domingo, the capital city. In Oct. 2000, Union Fenosa started building two diesel-fired power plants to supply electicity to Edenor and Edesur. Central Palamara is located in Edesur's acting region; it has a capacity of 102.5 MW and involved an investment of US$ 76 million. Central La Vega, in turn, has a capacity of 87.5 MW and is located in Edenor's influence area (it involved an investment of US$ 44 million). In 2003 Union Fenosa sold its 50 percent stake in Edenor and Edesur to the government. Union Fenosa received US$15 million for its stake in both Edenorte and Edesur, its other distribution asset in the Dominican Republic. Also under the deal, Union Fenosa would create a separate entity, Distribuidora Dominicana de Electricidad (Diodel) that will rent the distribution infrastructure for 12 years to Edenorte and Edesur. It was not clear whether the government would attempt to sell the distributors to new private investors or reintegrate Edenorte into CDE. http://www.miga.org/screens/projects/guarant/regions/lac02/unionfenosa-dr.htm Should Commit. Inv. in Facilities be registered? Union Fenosa owned 50%. Is that a controlling stake? Year % Private Inv. in Gov. Assets Commit. Inv. in Facilities 1999 50% 211.9 0 2000 50% 0 120