John Key faces questions over Mighty River in Chile
John Key, the Prime Minister of New Zealand is on a visit to South America including Chile, where he faced questions over the decision to sell Mighty River Power. The Prime Minister is visiting the country with a business delegation that includes a representative of Mighty River Power.
Mighty River Power is believed to have a risky investment in Chile that is causing losses worth hundreds of millions of dollars to the company. The Prime Minister has a hectic schedule on the visit with a total number of 15 exhausting flights in 10 days.
Mighty River Power has investments in the geothermal sector in the South American nation. The government is planning to partially privatise the company that has so far made large investments in Chile. Mighty River Power has invested $250 million at a geothermal plant in southern Chile but was forced to write off $89 million from the investment due to difficulties with the project.
Mighty River Power had blamed delays in Chile for the problems with the project. The country had a severe winter and only one well is working instead of two. The project is believed to be more expensive and less productive than expected.