Cape Verde’s state power company, Empresa Pública de Electricidade e Água (Electra) plans to take on a loan of 150 million escudos (US$1.37 million) from Banco Cabo-Verdiano de Negócios (BCN) under the terms of a government authorisation published in its official newspaper.
“The General Directorate for the Treasury is authorised to provide Electra with a surety in the amount of 150 million escudos, to stand as guarantee for a credit operation with Banco Cabo-Verdiano de Negócios,” according to a government resolution published in the Official Bulletin of 25 March.
The government explained its decision by saying that Electra needs to carry out projects to ensure power production, improved water distribution and preventing losses in both networks.
The resolution of the Council of Ministers also said there was a need to acquire equipment for maintenance of power generators in Santiago and Sao Vicente, as well as for the water collection system.
At the beginning of the month the Cape Verdean government announced Electra would be restructured by setting up a stake-holding management company, which will take on the power company’s debt and by dividing the company into two – Electra Norte and Electra Sul, which will start operating on 1 July.
The minister for Tourism, Industry and Energy, Humberto Brito, gave assurances that the company’s new management model and its division into Electra Norte and Electra Sul would make it possible to get closer t customers, improve the invoicing system, reduce treasury problems and fight fraud.
The Minister did not give a figure for Electra’s debts but, in June 2011, the company’s bank debt and debts owed to Cape Verde’s fuel supply company totalled around US$22.4 million. (macauhub)