20th May 2014 10:24
LONDON (Alliance News) - Rurelec PLC Tuesday said it expects to receive its settlement for the seizure of its stake in Bolivia's largest power producer in 2010 shortly, after a key council of ministers in Bolivia gave the necessary approval for the payment to be made.
The two sides have agreed that Bolivia will pay Rurelec USD31.5 million as settlement after Rurelec spent over three years fighting to get compensation after the country's government nationalised its 50.001% stake in subsidiary Empresa Guaracachi, the largest power producer in the country, by force in 2010.
Rurelec agreed to waive some of the company's entitlement in return for a fast payment, which it had initially expected in early May.
In February of this year, the Permanent Court of Arbitration in The Hague granted immediate compensation of USD35.5 million to Rurelec. A further USD5.5 million was due to be paid back to Rurelec by Empresa Guaracachi itself in the form of declared but unpaid dividends going back to the time before nationalisation, taking the total payments due to Rurelec to USD41 million.
Rurelec shares were up 2% at 6.5 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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