Cape Verde government to take control of power company Electra

25 July 2006

Praia, Cape Verde, 25 July – The government of Cape Verde is now the majority shareholder of power company Electra after reaching an agreement with Portugal, the Portuguese minister for the economy said in Praia Monday.

The agreement was signed Monday evening between the Portuguese and Cape Verdean Economy ministers and managers of Portuguese power company EDP and water company Águas de Portugal (AdP), companies which had thus far owned 51 percent of Electra’s shares.

Handing over control of the company to the Cape Verdean state will make it possible for Electra to clear its debts, said Portuguese Minister Manuel Pinho, whilst guaranteeing that the Portuguese companies would continue to be minority partners to Electra.

If no agreement had been reached with the Portuguese government, the Cape Verdean government had said it was possible it would bring the partnership with EDP and AdP to an end this month.

Until now, Electra had been 51 percent owned by the two Portuguese companies, while the Cape Verdean government owned the remaining 49 percent. (macauhub)