By means of Decree-Law No. 52/2021, of 21 July 2021, the Government approved the privatization process of ELECTRA – Empresa de Electricidade e Água, S.A. (“ELECTRA”) in the form of spin-off and subsequent sale of the shares representing the share capital of two companies (production and distribution of electricity) that will result from the demerger of the company.
The privatization process will be carried out through the sale:
- To a strategic partner, up to a limit of 75% of the share capital of each of the companies resulting from the demerger; and
- To workers, Cape Verdean emigrants and small shareholders, up to a limit of 25% of the share capital.
The sale of shares to the strategic partner is to be carried out through a public tender, which will begin with the publication of the announcement of the procedure.
The bidders shall meet the following requirements:
(a) Proven technical capacity with experience of at least 15 years in the energy production and distribution sector or installed capacity and volume of energy sold by the bidder in the last 5 years greater than the installed capacity and sales volume of ELECTRA;
(b) Financial capacity measured by the total assets of the bidder, which must be greater than the total assets of ELECTRA in the last 5 fiscal years.
As soon as the two electricity generation and distribution companies are incorporated by law, the public tender will be launched. It is estimated that the tender procedure will be completed in the course of 2022.
For further information about the content of this Project Alert, please contact: