The Province owns approximately 94% of SEL.
Enel Produzione and SEL – with stakes of 40% and 60% respectively – have established the joint venture that as from 2011 will operate hydroelectric diversion concessions in the Province of Bolzano with a total capacity of about 618 MW.
In implementation of the Final Agreement (the “Agreement”) signed on October 20, 2009, Enel Produzione SpA (“Enel Produzione”) and Società Elettrica Altoatesina SpA (“SEL”) today established the joint venture for the hydroelectric sector in the Province of Bolzano. The Province owns approximately 94% of SEL, with the remainder held by the municipalities and the district communities of the Alto Adige Region through Selfin Srl.
The joint venture, in which Enel Produzione and SEL hold stakes of 40% and 60% respectively, is a private limited liability company headquartered in Bolzano.
Until December 31st, 2010, the joint venture will operate the 12 major hydroelectric diversion concessions currently held by Enel Produzione in the Province of Bolzano, which expire at the end of the year.
As from January 1st, 2011, the joint venture will operate ten 30-year concessions with a total capacity of about 600 MW that, following the completion of provincial administrative procedures, have been issued to SEL with effect as from that date.
The deal was finalized following satisfaction of the conditions on which the transaction was contingent, namely obtaining (i) clearance from the Antitrust Authority and (ii) authorisation from the Province for the transfer of the hydroelectric concessions to the joint venture.
The Agreement also calls for Enel Produzione to sell the business unit that operates the concessions for minor hydroelectric diversions that it currently holds in the Province of Bolzano to the joint venture for 20 million euros within 60 days.
At January 1st, 2011, following completion of the latter transaction, the joint venture will operate hydroelectric facilities in the Province of Bolzano with a total capacity of about 618 MW and a total annual output of about 2.2 TWh.
For further details on the main elements of the Agreement and the related Preliminary Agreement, please see the press releases issued on October 20th, 2009 and October 23rd, 2008, respectively (available at www.enel.com, in the “media/press releases” section).