By Sean Carney
Slovakia is seeking 492 million euros ($535.8 million) in
compensation from Enel SpA (ENEL.MI) after a court in the capital
Bratislava confirmed an earlier ruling that the country's largest
hydro power plant belongs to the state and not the Italian utility,
the country's premier said Tuesday.
"The regional court in Bratislava ruled that the agreement on
Gabcikovo [hydro power plant] isn't valid. The court in Bratislava
confirmed the legally binding decision," Prime Minister Robert Fico
said on Tuesday.
Enel bought a 66% stake in Slovenske Elektrarne, Slovakia's
electricity company, in 2006 for EUR840, but ownership, management,
investment responsibilities and dividend rights to the Gabcikovo
hydro plant--which provides 10% of the country's power--has been a
subject of dispute between the two sides ever since.
When Enel took over Slovenske, it assumed management of
Gabcikovo--which was not part of the national utility--for 30
years, but Mr. Fico said the court's confirmation of an earlier
ruling in favor of the state is legally binding, and so the state
is seeking compensation.
"We will immediately send a letter to the Italian company
Enel...and we'll ask that they return to us, to the government of
Slovakia, that sum, which unjustifiably enriched the Italian
company Enel, in which the principal plus interest reached EUR492
million," Mr. Fico said.
All revenues from the power plant will go to the state budget
via the state-owned hydro power plant operating company, he
said.
Mr. Fico said the court decision justifies all steps of the
Slovak government to secure ownership of the plant and that the
state's steps are legitimate.
Any Enel claims to revenue from Gabcikovo or counterclaims to
the court decision are invalid and groundless, he said.
Representatives of Enel gave no comment on the ruling.
Write to Sean Carney at sean.carney@wsj.com
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