The hydroelectric power development company Rurelec took a 50 percent stake in last December is buying the massive 255 MegaWatt Santa Rita project in Peru.

Rurelec today told investors that its international arbitration claim against the Bolivian government has been independently valued at US$142 million.

It is acquiring a 50 per cent stake in a 38 megawatt power plant development for US$525,000. The project, located near copper mining areas in northern Chile, is expected to start commercial operation later this year.

Compensation for its nationalised assets in Bolivia could spark a transformation of Latin America-focused power group Rurelec says broker.

This morning chairman Andrew Morris said that Rurelec is now developing a growth strategy for ‘a time in the foreseeable future’ when it will have sufficient cash to invest in new power generation projects, with an emphasis on Chile and Peru. 

Analysts at Goldman Sachs have taken the knife to water groups United Utilities, Severn Trent and Pennon following a period of outperformance that it believes has left them looking rather expensive.

IPSA’s long-awaited turbine disposal is more than simply a means to clear the group’s debt. Crucially chief executive Peter Earl reckons his South African independent power business will now have ample cash left over to push ahead with a new phase of growth.

The South African power company has finally sold its gas turbines. IPSA will get around £41 million (US$66 million) for the four Siemens Westinghouse 701 DU gas turbines and it expects to have sufficient working capital for the foreseeable future, once all debts are paid.

National Grid may have irritated investors with its surprise rights issue. However, the company is performing strongly and the fund raising should secure the business and deliver high earnings and dividend growth in the long term.

Rurelec today announced the first sale of Certificates of Emission Reduction from its 50% owned subsidiary Energia Del Sur with Corporacion Andino de Fomento (CAF) and the development arm of the German government

The interim dividend has been boosted by 6.1% to 21p a share and the company has promised 70p (6.5%) for the full year, which is higher than sector peers Centrica, National Grid and International Power

Defensive stocks have outperformed the wider market this week, as investors have rotated a few funds away from cyclical high beta stocks that have risen a long way over the past six months

Given the paltry rates of interest available on the high street, a near 7% yield leaves National Grid shares well placed to find increasing favour in the months and years ahead.

Rurelec's majority held Bolivian unit Empresa Guaracachi is taking administrative control of the San Matias electricity distribution network and will expand power supplies both to the surrounding region and to the immediate border area in Brazil.

Bolivia has undoubtedly been the driving force behind Rurelec?s success in recent times, but today the company reminded investor?s that it is very keen on Argentina too. Rurelec announced that it had agreed to acquire the 50% in Energia del Sur that it doesn?t already own for US$25 million

From total group capacity of 444 megawatts as of the 31st December 2006, to projected capacity of 515 megawatts and 679 megawatts in 2007 and 2008 respectively, the company is expanding rapidly and is no low-growth European utility.