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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Compania Inversora en Transmision Electrica Citelec S.A.
Project ID
2975
Fiscal year
1994
Status
Not Active
Guarantee holder
National Grid Company plc.
Investor country
United Kingdom
Host country
Argentina
Sector
Power
Gross exposure
 $15.0 million
Project type
Non-SIP

National Grid Company (NGC), a British company, through its wholly-owned Dutch subsidiary, National Grid Finance BY, purchased a 15 percent interest in an Argentine holding company, Compaqma Inversora en Transmision Electrica CITILEC S.A. (CITILEC), which bid successfully on a privatization tender to acquire a 65 percent controlling interest in the Argentine national power transmission system. Upon privatization, the system was folded into one company, Transener S.A. NGC's total investment was approximately $24 million, for which MIGA issued $15 million coverage against the risks of currency transfer, expropriation, and war and civil disturbance. ECGD, the British national insurance agency, is also covering a portion of the investment.

Since 1989, the World Bank's country assistance strategy has focused on supporting Argentine efforts to improve public finances by eliminating the persistent structural deficit that had caused economic instability and slow growth during the 1980s. The privatization of Transener is a part of these efforts. This project is of particular importance to Argentina's electrical grid system since the Transener network forms the core of the Argentine Interconnected System and supplies the distribution companies in greater Buenos Aires and the provinces of central and northern Argentina. The privatization will also involve the introduction of new technology and the application of new management techniques.

 
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