Empresa Distribuidora Electrica Norte SA

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Argentinean state-owned Eseba was divided into three distribution companies that provide electricity distribution facilities to the Buenos Aires province. One of these three new distribution companies was Empresa Distribuidora del Norte SA (Eden SA). Eden SA operates in the northern area of the province of Buenos Aires, which had a 15,300km distribution system to serve 270,300 customers in 1996. The other two distribution companies are Empresa Distribuidora del Sur SA (Edes SA) for the southern area and Edea SA for the Atlantic area. Eden SA and Edes SA were jointly privatized in April 1997 when Eseba sold a 90% equity stake in the two new companies for $565 million to a consortium comprising AES Corporation and Community Energy Alternatives (CEA). The remaining 10% of the equity was reserved to be sold to the employees of the companies. The winning consortium split its bid as follows: $420 million for Eden SA and $145 million for Edes SA. By 1997, AES owned 60%, CEA 30% and employees 10%. Both companies operate under 95-year exclusive concession contracts. In 1996, Eden and Edes served a combined total of approximately 400,000 customers and were contractual customers of the San Nicolas generating facility, which is also jointly owned by AES and CEA. In 2001, CEA (renamed PSEG Global) sold its stake in Eden to AES (PSEG attempted to sell their stake in several projects in Argentina to AES in 2001 but the sale was not complete until 2003 due to disagreement over price between PSEG and AES). In 2002, AES Corporation filed legal proceedings with an international arbitration tribunal (International Centre for Settlement of Investment Disputes - ICSID) against the Argentinean government. The proceeding seeks compensation for losses incurred by the company at the time of the devaluation of the Argentinean currency. In 2009, AEI acquired AES's 90% stake in Eden SA making the project no longer distressed. For updates on the international arbitration proceedings, check http://www.worldbank.org/icsid (cases # ARB/02/17). In 2008, AEI was in the process of acquiring AES's 90% stake in Eden SA In 2009, AEI acquired AES's 90% stake in Eden SA.