Annual Report 2010 - Enel.com

creditor rights in respect of CELF (deriving from the contract
for civil works) and, in 1998, filed suit against Ampla.
In March 2009, the Brazilian court granted the complaint
and Ampla and the State of Rio de Janeiro appealed the
decision. In December 2009 the appeals court granted the
appeals.
The Brazilian construction company appealed that decision
to the Court of Cassation, which declined to grant the
petition. The construction company then lodged a new
appeal (“de Agravo Regimental”) with the Tribunal Superior
de Justicia de Brasil, which was rejected at the end of
August 2010 for lack of grounds. Following that decision,
the company requested a “mandado de segurança”, the
final judicial remedy to obtain a ruling establishing the
alleged right of the construction company to recover its
claim. The amount involved in the dispute is about €309
million.
In 1998 CIEN signed an agreement with Tractebel for the
delivery of electricity from Argentina through its Argen-
42. Subsequent events
234 Enel Annual Report 2010 Consolidated financial statements
tina-Brazil interconnection line. As a result of Argentine
regulatory changes introduced as a consequence of the
economic crisis in 2002, CIEN was unable to make the
electricity available to Tractebel. In October 2009, Tractebel
sued CIEN, which submitted its defense. CIEN cited force
majeure as a result of the Argentine crisis as the main argument
in its defense. As part of the dispute, Tractebel has
expressed its intention to acquire 30% of the transmission
line involved. The case is continuing.
For analogous reasons in June 2010 the company Furnas
also filed suit against CIEN for failure to deliver electricity,
requesting payment of about €235 million in addition
to unspecified damages. CIEN’s defense is similar to the
earlier case. At the end of July CIEN submitted its defense
against the claim and, subsequently, Furnas filed a brief
in response. The judge has initiated examination of the
case. In addition, on October 18, 2010, the judge asked
the parties to indicate whether they would be interested
in a “conciliation hearing”.
Agreement for development of geothermal energy in Turkey
On January 24, 2011, Enel Green Power has reached an
agreement with the Turkish group Uzun for the development
of geothermal plants in Turkey. In particular, the agreement
provides for the establishment of a research and exploration
company, owned and managed by Enel Green Power, with
Meteor, a company 70% owned by Uzun and 30% owned
by the Turkish geothermal consultancy G-Energy.
The new company will hold a package of 142 exploration
licenses in the west of the country, where it will carry out
surface and deep exploration activities with the aim of
finding geothermal resources suitable for the generation
of electricity and heat.
The licenses were acquired by Meteor under a law which
allows private parties to invest in research for geothermal
resources with a view to exploiting them for electricity,
heating and in agriculture.
Enel Green Power will finance the initial surface exploration
with a view to identifying the areas most suitable
for the development of geothermal projects, resulting in
what could be one of the most important centers of geothermal
activity in Turkey. Meteor will participate in Enel
Green Power’s investments in both surface and deep exploration
on a pro-rata basis.
Individual companies (with Enel Green Power again the
majority shareholder) will then be formed to develop each
geothermal project in the various areas involved.