Empresa Guaracachi SA

cancelled

Empresa Guaracachi SA is one of the three companies in which Bolivian Empresa Nacional de Electricidad's generation assets were corporatized for the capitalization program. The other two companies are Empresa Valle Hermosa SA and Empresa Corani SA. Guracachi had a total installed capacity of 216-MW (in three plants). The company was partially privatized in July 1995 when Ministry of Capitalization sold 50% of the equity for US$ 47.13 million to GPU International (formerly Energy Initiatives). The transaction included a debt transfer of $38 million. Under the Bolivian capitalization program, each company issued new shares equivalent to 50% of its new equity. This capital increase was sold to a private consortium through a competitive bidding process. The winning offer represented a capital increase for investment in business expansion. The remaining 50% equity stake was tranferred to private citizens and managed by private pension fund managers. CAF has granted the project company a loan of US$ 12.5 million and US$ 12.5 million in syndication. The winning consortium of the 50% stake receives all management rights for five years, or until the amount of capital to be invested is exhausted. The three new owners of Corani, Guaracachi and Valle Hermoso plus Compania Boliviana de Energia Electrica (Cobee) have exclusive rights for new generation licenses until 2000, and exclusive rights for licenses for power plants that will export power until 1999. However, any private participant of winning consortium cannot own more than one generation company or also own distribution companies. In 1998, CAF granted a US$ 25 million loan to Empresa Guaracachi. In 2004 the sponsor composition changed whereby the shares held by GPU International (First Energy) were sold to UK firm Independent Power Corporation (IPC). Operations will continue through IPC's subsidiary Bolivia Integrated Energy. In October 2009, the Bolivian government concluded negotiations with three main generating companies created from the the privatization of ENDE, and aimed to secure state control with a share of 60–70%. As of December 2009, the Bolivian government held the following shares in its generation companies Corani (42.7%), Guaracachi (49.82%), and Valle Hermoso (49.86%). In May 2010, a Bolivian government decree stated that the state was taking control of the stakes that private investors held in four power companies, including Corani, Guaracachi and Valle Hermoso.