The board of Reykjavík Energy (OR), partially owned by Reykjavík City, decided at a meeting on Saturday to support Reykjavík Energy Invest’s (REI’s) participation in privatizing the Philippine national energy company PNOC-EDC.
“The deadline is coming up [today], so we had to decide whether REI should continue to participate in this project or not,” the chairman of OR’s board Bryndís Hlödversdóttir told Morgunbladid.
Hlödversdóttir said that the board had reached the conclusion that if REI, in which OR holds a share, would withdraw from the privatization project, it would have gambled with its credibility.
Members of the Independence Party who have a seat on the OR board sat by when the decision was made because they were dissatisfied with the time pressure and the financial commitments involved, according to OR board member and Independence Party councilman Júlíus Vífill Ingvarsson.
Ingvarsson said they believe it is too risky for REI to put all its assets into one large project. According to a report submitted by Independence Party members at the meeting, REI would have to contribute up to ISK 15 billion (USD 253 million, EUR 175 million) to the project.
Last Thursday Reykjavík City Council decided to reject the merger between REI and Geysir Green Energy (GGE), which had previously been accepted at an OR board meeting October 3.
Both Svandís Svavarsdóttir, the City Council’s vice chairman and the leader of the multi-partisan investigative committee called to look into the legality of the merger, and Margrét Sverrisdóttir, councilman for the Liberal Party and a member of the committee, said it had never been their intention to prevent REI from participating in overseas energy projects which had already begun.
Click here to read more about REI’s project in the Philippines.