MADRID, Aug 25 (Reuters) - Spain’s Red Electrica has reached a preliminary agreement with the Bolivian government over the expropriation of the Spanish electricity grid operator’s local transmission business, it said on Monday.
Bolivia’s leftist President Evo Morales nationalised Red Electrica’s Transportadora de Electricidad (TDE) in 2012, accusing the company of failing to invest enough in the country’s electricity networks.
Red Electrica had threatened to seek World Bank arbitration if it did not receive fair compensation for the loss of TDE.
“There is an initial agreement that ... opens the door to a positive end to negotiations, which are still ongoing,” Red Electrica told Reuters in an e-mailed statement on Monday.
The statement followed comments about an initial deal by Bolivia’s attorney general Hector Arce to Bolivian state TV on Sunday and compensation settlements with other foreign companies as Morales seeks re-election in October for a third term in office.
Red Electrica bought TDE in 2002 for $91 million and has said that the company was worth $164 million at the end of 2011. (Reporting by Jose Elias Rodriguez; Writing by Tracy Rucinski; Editing by David Goodman)