Hydro-Quebec International Acquires Shares and Control of 300-MW Power Plant

Hydro-Quebec International (HQI), in partnership with the Solidarity Fund and Coastal Power, has acquired 51 % of the shares and the effective control of the Fortuna 300-MW power plant in Panama. The acquisition is valued at $183 million.

Coastal Power Company, which holds 49.9% of the new enterprise, has interests in nine generating stations located in El Salvador, the Dominican Republic, Guatemala, Pakistan and China. It is a wholly owned subsidiary of Coastal Corporation, which has assets of more than U.S.$ 11 billion.

The Solidarity Fund, which is associated with the Quebec Federation of Labor, is an investment fund that uses the savings of Quebec workers to contribute to creating and maintaining jobs. In February, the Solidarity Fund agreed to invest $500 million in projects with HQI on the international energy market during the next five years.

The Fortuna power plant was part of the generating facilities of the Instituto de Recursos Hydraulicos y Electrificacion (IRHE), an integrated state-owned utility that has been split into eight distinct enterprises: 4 production, 3 distribution, and 1 transmission. The transmission enterprise remains under the control of the state. In September 1998, the distribution companies were sold to Constellation Power (U.S.) and Union Fenosa (Spain).