Rejected appeal allows Enel Green Power to increase stake in company LaGeo in El Salvador
Berlin geothermal power plant of La Geo in El Salvador (source: Enex)
Francisco Rojas
19 Sep 2014
The arbitration ruling recognised the right of Enel Green Power S.p.A. to increase, through the investments it executed, its equity stake in El Salvador’s company “LaGeo”.
In a recent press release done by ENEL, they inform that the French Supreme Court (“Cour de Cassation”) denied the appeal filed in 2013 by Inversiones Energéticas, S.A. de C.V. (INE) and by the Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL), challenging the decision of the Court of Appeals that upheld the ruling of the Court of Arbitration, made in accordance with the rules of the International Chamber of Commerce (ICC), concerning investments in LaGeo S.A. de C.V. (LaGeo), the joint venture between Enel Green Power S.p.A. and INE for geothermal development in El Salvador.
This decision therefore makes the Arbitration Court ruling issued in 2011 definitive. The arbitration ruling recognised the right of Enel Green Power S.p.A. to increase, through the investments it executed, its equity stake in El Salvador’s company “LaGeo”, through the subscription of new shares in the joint venture, as well as the right to receive the company’s earnings in the form of dividends.
