LaGeo to start Berlín, Ahuachapán expansion

Salvadorian geothermal company LaGeo has finished feasibility studies on the planned expansion of its Berlín and Ahuachapán plants and will start construction shortly, LaGeo general manager José Antonio Rodríguez told BNamericas. A third project, Cuyanausul, which is near Ahuachapán, is still undergoing feasibility studies. Once concluded, regulator and environmental permits will have to be obtained from the corresponding ministries, he said. Italian company Enel is supplying the US$110mn capital needed for the three projects. Enel formed a strategic alliance with LaGeo in June 2002 "allowing Enel to count on an already established infrastructure," Rodríguez said. El Salvador's government and Enel own LaGeo, which was formerly known as Gesal. Enel received interest in LaGeo in exchange for its investment. The three projects will bring on line 64MW and are scheduled to be operating by mid-2006, Rodríguez said.