Press office

Press office

02.05.2012

Red Eléctrica defends its management in Bolivia and trusts it will receive adequate compensation for TDE

In lieu of the announcement of the Government of Bolivia to nationalize the company TDE, Red Eléctrica, which owns 99.94% of the capital, respects their sovereign decision regarding the structure of the country's power sector, provided that this process meets international principles of law.

Red Eléctrica, which makes itself available to the Government of Bolivia to start the pertinent negotiations, trusts that it will reach an agreement to achieve adequate compensation and thus defend the interests of its shareholders, both national and international. It will be a negotiation marked by transparency regarding the management and the financial statements of Red Eléctrica in Bolivia, backed by both the corresponding Bolivian authority and multinational auditing companies of international recognition, who have audited the company annually.

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.

However, the decrease in the rate of investment in recent years is due to the fact that since 2008 new grid developments are awarded by law to the national public company ENDE, whereby the investment by Red Eléctrica is limited to the maintenance and modernization of existing facilities. That is to say, they respond to a decision of the Government of Bolivia and not a unilateral decision by the Company.

These investments have placed the Bolivian high voltage grid within standards of quality recognized internationally, as evidenced by the minimum incidence of supply interruptions in the grid managed by Red Eléctrica.