Chile Enersis to invest $10 billion in Latin America

By Antonio de la Jara

SANTIAGO (Reuters) - Chile-based regional energy group Enersis (ENI.N: Quote, Profile, Research) ENE.SN said on Tuesday it would invest $10 billion in Latin America between 2008-2012, adding that its plans would not be derailed by turbulence in global markets.

"Around $4.4 billion will be spent on the distribution business and $5.6 billion on power generation, at today's exchange rate," Chief Executive Ignacio Antonanzas told Reuters after a shareholder meeting of the group's Endesa Chile unit.

Enersis, the regional investment arm of Spain's Endesa (ELE.MC: Quote, Profile, Research), is headquartered in Santiago and has power generation and distribution units in Argentina, Brazil, Colombia, Chile and Peru.

The company's power-generating operations are concentrated in Endesa Chile, while its distribution business is centered in Chilectra and other subsidiaries.

The company's investment plans over the next five years will be funded in large part by cash flow, Antonanzas said.

Enersis shares closed up 3.14 percent at 160.25 pesos on the Santiago bourse.

Antonanzas said 36 percent of the total planned investment would be spent in Chile, where $2.6 billion would be spent on power generation projects and $850 million on distribution.

He said $1.0 billion would be spent on power generation in Colombia and $600 million on distribution. In Brazil, $800 million would go on generation and $1.9 billion on distribution, with much of the balance going to projects in Argentina and Peru.