Endesa Chile agrees to sell hydro plant for $174m

28 March 2003 – Endesa Chile said Thursday it is to sell its Canutiller hydroelectric plant to Hidroelectrica Guuardia Vieja SA, a unit of the Matte group for $174m The cash deal is due to be signed on 30 April.

The sale is part of a programme of disposals being undertaken by Spanish parent Endesa which is trying to raise $800m and raise $2bn in order to strengthen its balance sheet in the wake if setbacks in Argentina and Brazil.

A spokesman for Endesa said, “The resources that Endesa will get from the sale will allow it to improve its credit status, help its current investment projects and grant the company greater liquidity to face the global economic situation.”

Enersis also said in January it would sell Rio Maipo, Chile’s fifth biggest electricity. Endesa Chile has a total debt of $4.426bn, of which $920m matures in one year.

Canutillar is located close to the southern city of Puerto Montt and has an installed capacity of MW, equivalent to 3.2 per cent of total capacity in the central transmission grid, which supplies 90 per cent of the country’s electricity.