The government’s proposal calls for the restructuring of the company that would be based on the splitting up of Electra into island-based corporations and the creation of a Shareholders’ Management Corporation, which would manage the state’s share in the new corporations. The measure, according to cabinet spokeswoman Janira Hopffer Almada, is aimed at changing the operational and financial situation of Electra, in which the government has “invested ten billion escudos over the past three years.”
Almada guarantees that the proposed restructuring is based on concentrating on the areas of electricity production, transportation, distribution and commercialization, as well as “the treatment of residual waters, the reaffirmation of the concessionary status of the water and electricity transportation and distribution network and the maintenance of the verticalization of the new companies in order to ensure their economic and financial sustainability.”
The restructuring program is to be carried out in phases, and is intended by the government as a way of guaranteeing an increase in operational efficiency, the decentralization and reinforcement of regional management and an increase in client satisfaction.
Electra currently owes considerable debts to its suppliers, including the fuel companies operating in Cape Verde. “We have a debt of more than 800 million escudos to the fuel companies. All told, including energy theft and loss, we’re moving towards a crisis situation,” Electra Executive Commission president Antão Fortes recently told A Semana.
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