Fenosa, Nicaragua
resolve dispute over
energy services
The Nicaraguan
government and Union
Fenosa SA have resolved
a disagreement over
power shortages and
legal action by both
parties has been
dropped, Nicaragua's
Communications Minister
Rosario Murillo said on
local radio.
Nicaragua government
officials and Union
Fenosa management have
signed an agreement
which establishes the
willingness of both
parties to maintain the
Fenosa's operations in
the country and
guarantee an improved
service, Murillo noted.
Union Fenosa had faced
potential suspension of
its concessions in
Nicaragua for not
fulfilling contractual
obligations after severe
power shortages hit the
country in April.
The Spanish utility had
threatened to sue the
Nicaraguan government up
to us$54 million dollars
in return to protect its
investment in the
country.
Nicaraguan lawmakers
approved funding to buy
more power and install
new generators in an
attempt to ease
widespread blackouts in
this energy-starved
nation.
The bill passed last
Thursday provides us$5
million for Fenosa, to
buy more energy.
It also authorizes new
generators that will add
120 megawatts to the
country's grid over the
next 10 months.
Nicaragua has an energy
deficit of 100 to 300
megawatts, according to
Energy and Mines
Minister Emilio
Rappacioli. That
shortfall has led to
power rationing programs
that cause blackouts of
up to 18 hours. |
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