Govt scraps plans to privatize ISA, Isagen - Colombia

[Judi Lynn]

Source: Business News Americas

Govt scraps plans to privatize ISA, Isagen - Colombia
Published: Wednesday, June 27, 2007 17:25 (GMT -0400)

Colombia's government has cancelled its plan to privatize state transmission company ISA and generator Isagen, President Álvaro Uribe said in a statement.

Uribe believes the state would benefit most by maintaining control of the companies.

"I don't think Isagen and ISA have financial problems. They are good companies thanks to reforms to both," he said.

The government had hoped to raise nearly 4.5tn pesos (US$2.4bn) from the sale of its 56% stake in ISA and 25% of its 57% stake in Isagen, the government said previously.


Read more: http://www.bnamericas.com/story.jsp?idioma=I§or=10¬icia=397798

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Earlier news:

Wednesday June 27, 2:03 AM
Colombia reconsiders ISA, Isagen sale

BOGOTA, June 26 (Reuters) - Colombia is reconsidering its planned 2008 sale of its share in local electricity operators, ISA and Isagen, for which it had expected to receive around $2.29 billion, the finance minister said on Tuesday.

The privatization of the two companies formed part of the government's financing plan for next year and it had said part of those earnings would be used to prepay a portion of the country's foreign debt.

"The president has asked that we carefully weigh the profits generated by ISA versus the costs of the debt and what we were thinking about prepaying," Finance Minister Oscar Zuluaga told local radio.
(snip)

http://asia.news.yahoo.com/070626/3/33xz1.html

[formercia]

1. I bet the boys are pissed

I wonder if Wolfowitz's departure had something to do with Uribe's decision.