The Portuguese Electricidad de Portugal (EDP) power group has decided to sell its 29 percent stake in the Moroccan water and power management firm Redal. EDP did not disclose the reason for its decision, but it is believed to be part of a general move to withdraw from electricity utilities abroad, mainly in Guatemala and Brazil, the Moroccan news agency MAP reported.
Other sources suggest the reason is divergences of opinion among the Portuguese and Spanish partners—the Urbaser firm, an arm of Dragados group—over the management of Redal. According to Arabic News, the French Vivendi group, which owns a 35 percent share in Maroc Telecom, has already expressed interest in taking over the Portuguese shares in Redal.
In 1999, Redal, was granted a 30-year concession for the management of water and power networks in Rabat and its twin city of Sale, for a $1,5 billion investment. The firm plans to invest a total of 13.7 billion Moroccan dirhams ($1.18 billion) to upgrade the cities’ infrastructures. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
