Santos’ coalition cracks over planned privatization of Colombia energy giant Isagen
Santos’ coalition cracks over planned privatization of Colombia energy giant Isagen
Posted by Adriaan Alsema on Jan 6, 2016
Colombia’s Liberal Party has threatened to leave the coalition supporting President Juan Manuel Santos in congress over a surprise announcement to proceed with selling the state’s majority share in Isagen, one of the country’s largest energy producers.
With Congress in recess, the country’s Finance Minister on Monday announced that Canada’s Brookfield Asset Management and Chile’s Colbun will bid for the controlling stake in Colombian power generator Isagen at an auction on January 13.
The sale is controversial because opponents fear both an increase in energy prices if the company is privatized and possible lay-offs of Isagen personnel. Additionally, opponents have claimed that the bidding price was set too low compared to the assumed value of the company.
The Santos administration, already dealing with a considerable budget deficit, has claimed that selling Isagen is crucial not just to close the fiscal gap, but also to generate funds for investment in infrastructure.
More:
http://colombiareports.com/santos-coalition-cracks-over-sale-of-colombias-largest-energy-company/