Hydro-Québec and Fonds de Solidarité Sell HQI Shares

On August 1, 2006 Hydro-Québec International Inc. (HQI), a wholly owned subsidiary of Hydro-Québec, and Fonds de solidarité des travailleurs du Québec (F.T.Q.) (FSTQ) completed the sale of all the issued and outstanding shares of HQI Latin America Ltd. (HQI LA), a company constituted under the laws of the British Virgin Islands, to Enel Investment Holding B.V. (Enel), an affiliate of Enel Latin America, LLC., for an aggregate purchase price of US$150 million.

HQI and FSTQ owned, indirectly, a 24.55 per cent stake in Empresa de Generación Eléctrica Fortuna, S.A., a Panamanian hydro generation company, which generates almost 30 per cent of all electrical energy in Panama annually, making it the largest generating facility in the country.

HQI was represented internally by a team that included Daniel Garant, Caroline Derome, Ginette Lemay and Simon Ouimet. FSTQ was represented internally by a team that included Josée Lachapelle, Claude Jarret and Michel Dorion. Pierre-André Themens, David Torralbo, Marie-Andrée Latreille, Elliot Greenstone and Anthony Arquin of Davies Ward Phillips & Vineberg LLP acted as HQI and FSTQ's external counsel. HQI and FSTQ were also assisted, as to matters of Panamanian law, by Mauad & Mauad, and as to matters of BVI law, by Sucre, Arias & Reyes and WSmiths.

Enel was represented internally by a team that included Antonio Cammisecra and Paula Lausa and Giuseppe Conti and was assisted by external counsel José Valdivia and Catherine Jones of Hogan & Hartson LLP. Enel was also assisted by Appleby Spurling Hunter as to matters of BVI law, and Icaza, González-Ruiz & Alemán as to matters of Panamanian law.