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dam-l RALCO CONSTRUCTION DATE ADVANCES



CHIP News for January 29, 1999
Sources: EL MERCURIO;LA TERCERA

RALCO CONSTRUCTION DATE ADVANCES

Endesa President Jose Antonio Guzman said Monday that the recent advances
made in the controversial land swap agreements with indigenous families,
the company is ready to renew construction at its US$500 million Ralco dam.
Any further delay, he said, would result in a postponement of the targeted
start-up date of 2002.

Ralco's construction means the relocation of 91 Pehuenche families and the
flooding of 600 hectares of ancestral, sacred lands.

To facilitate the relocation, Endesa has signed land-barter contracts with
83 of the 91 families. A government agency recently approved most of these
barter arrangements.

But at least seven families refuse to sign an agreement with Endesa, saying
they would rather die than leave their property.

Endesas says Ralco will cover rising electricity demand which could become
acute in the coming years if drought conditions continue.

The Chamber of Deputies Mining and Energy Commission, however, recently
accused Endesa of causing the energy crisis Chile
has been facing since November by concealing information about falling
water levels. Guzman said that the Commission cannot
substantiate these accusations and that the cause of the crisis was
continued dry weather and delays at several new natural gas
generators.

Chile Information Project