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Spanish power network says no major impact from Bolivia move

Spanish power network shrugs off decision by Bolivian president Evo Morales to nationalize power company, stating there will be no significant impact

AFP , Wednesday 2 May 2012
Views: 982
Views: 982

Spanish electricity transmission group Red Electrica Corp. said Wednesday it expected no significant impact on its results from the expropriation of its assets in Bolivia.

"This event has no relevant effect on the business and results of the REC group," it said in a statement, estimating that operations in Bolivia accounted for about 1.5 percent of total revenues.

Red Electrica said it was waiting to hear what the process would be for the expropriation, and the manner in which the value of the group's holdings in Bolivia would be assessed.

Spain's government said it would help the company to seek a fair price for the assets.

"What the Bolivian government guaranteed is that it will compensate the firm for the costs invested in the electrical grid," Economy Minister Luis de Guindos said on the sidelines of a meeting in Brussels.

"Obviously it is an element that the Spanish government will keep an eye on and deal with as regards assistance for a fair price for these investments," he told reporters in comments broadcast on Spanish public television.

It was the Spanish government's first public reaction to Bolivian President Evo Morales's decision, which came just 15 days after Argentina announced it was taking over Spanish oil firm Repsol's YPF subsidiary.

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