Ministry to publish privatization schedule this week

7.09.06

www.bnamericas.com

Colombia’s mining and energy ministry (Minminas) will publish a tentative schedule on Friday for the total or partial privatization of several electric companies, ministry officials told BNamericas.

In addition, Minminas staff has been answering a list of questions from lawmakers about the potential privatizations as many of the sales would require legal approval.

The ministry is considering several plans for the privatizations, including one where individual Colombian investors will be allowed to purchase shares in the companies. In another, investors would be able to buy into some companies as major partners.

President Álvaro Uribe said in early August he would like to privatize state electric company Corelca, which serves towns on Colombia’s Atlantic coast. Proceeds would help finance infrastructure works in that region.

Formerly an integrated company, Corelca has in recent years sold off distribution assets Electrocosta and Electrocaribe and transmission asset Transelca. Now it is divesting generation asset Gendelca.

Uribe also plans to sell off government stakes in another two electricity companies: Edeq and Chec. The government holds 17% and 13% in the two respectively.

State-owned electricity companies in Colombia have a combined power loss rate of 30%, according to the ministry. The rate is usually lower for private companies, however, which pursue theft more sternly.

By Carlos Camacho

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