The Chairman of Red Eléctrica travels to La Paz to meet with the Government of Bolivia
The Chairman of Red Eléctrica, José Folgado, will travel next Monday to Bolivia to meet in La Paz with the Minister of Hydrocarbons and Energy, Juan José Sosa.
This will be the first contact of the executive directors of the company with representatives of the Bolivian government to discuss the situation created after the nationalization of Red Eléctrica's subsidiary TDE (Transportadora de Electricidad), and to begin the pertinent negotiations to achieve adequate compensation and thus defend the interests of its national and international shareholders.
Mr. Folgado will defend the investments made and the improvements carried out by Red Eléctrica to the Bolivian transmission grid since it acquired TDE in 2002.
Since the acquisition of TDE, Red Eléctrica has made a major investment effort in Bolivia. To the figure of more than 74 million dollars invested from 2002 to 2011, of which 69 correspond to transmission grid projects, another 14 million dollars needs to be added and which have been allocated to projects already commenced, totalling an amount in excess of 88 million dollars.
This amount is close to the price paid by Red Eléctrica for TDE when it acquired it in 2002 for a total of 91 million dollars, thereby reflecting the company's commitment towards the development of Bolivia.
According to the 2011 TDE accounts approved at the General Meeting, the net equity of the company totals 1.151 million Bolivian bolivianos (around 164 million dollars), whilst in 2010 it was 150 million dollars. Moreover, the accounts reflect a high level of soundness of the Bolivian company with leverage of 25%, low figure for an electric infrastructure company.