Venezuela:
US and Venezuelan power consortium
Awarded majority share in SENE
September 18, 1998
The Venezuelan government began the third phase of privatization aimed at transforming the Venezuelan power sector by adjudicating 70% of the shares of electric system of the State of Nueva Esparta (SENE) to the ENELMAR S.A. Group with US and Venezuelan capital.
The Venezuelan Investment Fund (FIV), the official entity responsible for the privatization of State-owned companies, on September 14 awarded 70% of SENE by means of a concession contract. The winning consortium bid a premium of 157.17% above the base price established of 35 million dollars, leaving the share structure as follows:
Shareholders |
Percentage of Shares |
CMS Electric & Gas |
70% |
Casa Paris, S.A.. |
25% |
Consultores Occidentales, S.A. |
5% |
This is the first Venezuelan power complex to be privatized. The concession agreement is for 50 years and commits ENELMAR S.A. to investing more than 210 million dollars over a ten-year period. It also includes a rate system with quality standards for the service that will go into effect as of January 1, 1999. Among the first decisions that the group must make is with respect to the technology for supplying energy over the long-term.
SENE provides electricity to more than 84 thousand clients with an average consumption of 970 GW/h and a maximum demand of 16 MW. This service is provided in a 1,150 square kilometer area with a population of 300 thousand that includes the islands of Margarita, Cubagua and Coche, tourist destinations some 330 kilometers northeast of the country’s capital, Caracas.