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

IndustriesAssociated Press

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.

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

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

Slovenske elektrarne operates the Gabcikovo plant.