Portuguese consortium becomes minority shareholder in Cape Verde’s Electra

4 September 2006

Praia, Cape Verde, 04 Sept – The Energias de Portugal/Águas de Portugal (EDP/AdP) consortium is now a minority shareholder in Cape Verdean electricity production and distribution company, Electra, under the terms of an agreement signed Thursday with the government of the archipelago, officials said.

The agreement, which was made public Friday, takes the Portuguese consortium from majority shareholder with 51 percent of the company’s capital, to having a 34 percent share, while the State has 51 percent and the remaining 15 percent is in the hands of local councils.

The director general of Industry and Energy, Abraão Lopes said that this new situation was the result of an agreement signed on July 24 although this was a “definitive document that covers more, and with more specific terms.”

After the agreement is made official, the government will begin to work to solve Electra’s problems, such as the electricity supply of capital city, Praia, which in July suffered its worst crisis with repeated power failures.

“We are currently in negotiations with other partners to hire another source to ensure Praia’s electricity supply,” he said.

“But there are other problems, namely, after the rains, some breakdowns, damaged cables and short circuits in Praia’s network that we plan to definitively solve,” he said.

Lopes also added that the government was negotiating with the African Development Bank to boost supply on Santiago island at its only power plant.

Electra’s general meeting is due to be called for September in order to “set the company’s new board, legalize the new agreements that have been signed.”

The signing of the definitive agreement was carried out by email using the electronic signature of each of the parties. (macauhub)