Slovak government terminates hydro power plant lease deal with Italy's Enel

BRATISLAVA, Slovakia – Slovakia’s prime minister says his government is terminating the lease of a major state-owned hydro power plant to Italian energy company Enel.

Robert Fico said Thursday that Enel had breached a contract signed in 2006. He has blamed Enel for not providing sufficient information about profits generated by the 720-megawatt Gabcikovo plant located on the Danube river and a lack of a plan for its maintenance.

Enel has rejected Fico’s allegations and has not ruled out legal action against the government.

Enel owns a 66 per cent stake in Slovakia’s major power producer, Slovenske elektrarne, and is currently trying to sell its share. The government owns the remaining 34 per cent.

Slovenske elektrarne operates the Gabcikovo plant.