Jul 27, 2012 - Argentine energy company Genneia is rescheduling planned investments, most of them renewable, due to difficulties in obtaining financing in the international markets, CEO Walter Lanosa told business daily El Cronista.
In March, Genneia, former Emgasud, announced a USD 1.8 billion (EUR 1.469bn) plan for the next 10 years to install wind power of 350 MW, biofuel power units of 200 MW, solar power of 250 MW and conventional thermal capacity of 200 MW.
The main obstacles are the European crisis and the political and economic uncertainty which foreign investors see in Argentina, the daily said. The company cannot offer bonds at a rate much higher than the logical one and at the same time nobody is willing to invest in local projects due to the country risk, Lanosa said.
Genneia mulls over seeking financing from local public banks and entities or incorporating local and foreign partners to the projects, he added.
(USD 1 = EUR 0.816)
Diana Hristova is our expert for Latin America. She has spent several years following the diverse industries in the region, the energy sector most of all. Now Diana is exploring Latin America’s huge wind, solar, geothermal and hydropower potential.