Report: Enersis to invest US$600mn in 2004

Chilean power holding company Enersis (NYSE: ENI) plans to pump US$600mn into Latin America in 2004 to maintain existing investments and finish two hydro generation projects in Chile and Brazil, newspaper El Diario quoted the president of Enersis's parent Endesa Spain, Pablo Irarrazaval, as saying. About US$400mn will be destined to expand and maintain existing investments, while US$200mn is needed to wrap up the Ralco hydro project in Chile and the Fortaleza hydro project in Brazil by mid-2004, Irarrazaval said. Enersis plans to focus on improving distribution assets in its existing portfolio from 2004, according to a previous report. In 2003 Enersis focused on reducing its debts, and once it completes a refinancing program by the end of the year it plans to take a step back and consolidate its position in the region, particularly in terms of distribution. The company plans to invest about US$300mn a year to meet organic demand growth in its distribution subsidiaries after it completes Ralco and Fortaleza.