Enarsa gets new name, announces US$1bn in asset sales

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Wednesday, March 21, 2018

The Argentine state company formerly known as Enarsa has approved its name change to Integración Energética Argentina (IEASA), which involves internal restructuring and the sale of non-strategic assets, state news agency Télam reported.

The assets will include six thermoelectric plants and shares in various companies and the state expects to raise, "in a conservative estimate," US$1bn, which will be used to finance current and future projects, the report said.

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As previously reported, the government will divest IEASA's 50% stake in Citelec, which in turn owns 52% of Transener.

The Cóndor Cliff-Barrancosa hydro project, the Río Turbio thermoelectric plant, the GNEA gas pipeline and the recently awarded expansion of three gas pipelines will remain unaffected by the process.

However, the Ensenada Barragán simple cycle plant, in Buenos Aires province, and Brigadier López in Santa Fe will be sold, but on condition that the purchasers complete their conversion to combined cycle, which will add 450MW to the grid.

Investors will also be offered shares in the investment fund for the wholesale electricity market known as FONINVEMEM, created in 2005 to increase energy supply and which owns the General Belgrano, Vuelta de Obligado and Almirante Brown combined cycle plants in Buenos Aires, and the General San Martín plant in Santa Fe, together totaling 800MW in capacity.

Under the plans, IEASA will merge with Emprendimientos Binacionales (Ebisa), which is responsible for the sale of energy generated by binational projects and is the vehicle through which the state shares ownership of the Yacyretá dam with Paraguay.

The government will also sell its shares in assets where it has a stake of 10% or less, namely Central Puerto, Transba, Dique SA and Central Térmica Güemes, and IEASA's 51% future stake in Dioxitek, whose uranium fuel processing plant is under construction in Formosa province.