Enersis to re-capitalize ailing Argentina thermo plant

Friday, October 3, 2014

Chile-based power holding Enersis will re-capitalize two ailing subsidiaries that operate the 870MW Dock Sud combined cycle plant in Argentina.

Enersis commissioned independent appraisal reports of subsidiaries Inversora Dock Sud (IDS) and Central Dock Sud (CDS) by IM Trust and Itau, whose findings supported the operation, according to a filing with the US Securities and Exchange Commission.

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Under the financing plan, Enersis will purchase loans granted to the subsidiaries by Enersis parent Endesa.

CDS and IDS ended 2013 with negative assets of 382mn pesos (US$59mn) and 101mn pesos, respectively.

The ownership of CDS is divided among Enersis (40%), Argentine state oil company YPF (40%) and BP subsidiary Pan American Energy (20%).

The plant supplied 4% of Argentina's energy demand last year, CFO Eduardo Escaffi said in a conference call, and a much higher percentage of demand in the Buenos Aires area.

Escaffi said Dock Sud is "absolutely necessary" for Argentina to meet its power needs.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.