12 November 2004
Newspaper: La estafeta de Navarra

"The sale of EHN is a success both for the company and the sector"

During the "Mesa of Redacción" programme of Canal 6 Navarra, SODENA Director-General José María Aracama explained all the details of the sale of EHN, together with other developments related to SODENA.

The first question is the one everyone is asking: Why did SODENA sell a profitable company that makes a profit every year?

SODENA is the Development Agency of Navarre and as such its objective is not to remain in the capital of companies indefinitely. Its aim is promotion, and it participates until the company in question gets up to cruise speed, which is the moment when it seeks private capital to replace the public holding. SODENA has stayed in EHN longer than expected, so now is the right time to take advantage of the capital gains generated for other purposes, either through SODENA or the Government of Navarre.

¿The Government has earned over 300 million euros and has already announced that it will continue to invest. Which sectors do you think could benefit from this reinvestment?

When ACCIONA entered EHN's capital last year capital gains of 80 million euros were earned, and this year the sale will mean 307 million in cash plus a further 90,000 euros that will be received on the basis of the company's profits over the next two years. Indeed, this is a lot of money, because the capital gain is obtained from an investment of 4.7 million euros, i.e. the investments made by SODENA from 1989 to 2002. I think it is a tremendous success for both the company and the sector, not just because of the capital gain but because a whole new sector has emerged. This factor does not always appear in newspaper headlines, which seem to concentrate on the fact that we have earned money.

In 1989 we had 94% dependence on external electricity supplies. We are now exporting energy, even though consumption has doubled in the interim. 75 per cent of this consumption is covered by renewables, and it is important to know that over 3,600 people are now working in this new sector, which has created a large industrial base. When we first opted for wind power in 1994 we chose Danish technology, but now several companies operating in Navarre have their own technology and are world benchmarks. EHN is one of these thanks to its hard work, and I am completely sure that it will carry on in the same direction, regardless of who its shareholders are.

ACCIONA has made a firm commitment to this sector and the company is based in Navarre, together with its management team and many of its facilities. However, the economic development of the company now involves investing outside Navarre, with sums of money that a public company like SODENA clearly cannot risk. That is why I think this is the right time to sell.

As for how the money will be spent, it would be easy to draw up a list of needs that the region has, but priority will have to be given as to how the money is spent.

You said that SODENA was a pioneer through the creation of EHN. Could it be a pioneer as to where the 400 million euros will go?

We have two shareholder partners, the Government and Caja Navarra, and they will take the decisions. I understand there are some one-off investments that can be made with this money, projects that the present level of public income cannot cover. Moreover, SODENA needs to continue investing in renewables, I think this is a world that has just begun. In the market there are two profitable modalities - hydro and wind power - but others like photovoltaic are coming on strong. These technologies need to be developed, as has been done in the case of wind power. The idea is that the cost of producing a kilowatt should be cheaper all the time. There are others, however, for example biofuels and hydrogen. This is where SODENA needs to work hard and provide investment, together with money from private investors who are interested in renewable energy sources for the future.

Another area where we have broken ground is biotechnology. This will be of great importance for Navarre. We have already set up the first key element, through the University Clinic, the Faculty of Medicine, the public Hospitals, companies such as Cinfa. Now the CIMA has come on the scene, and it will help to change the way the region works. We need to go down this road because we have a slight competitive advantage vis-à-vis other regions and countries, and we need to make the most of it.