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Electricity distribution tenders.

ELECTRICITY DISTRIBUTION TENDERS. The concession contracts signed in Oct. 22, 1998 with Gas Natural Fenosa and Ensa, 15 years ago are going to expire, meaning that Panama's National Authority of Public Services (ASEP) must tender the sale of 51% of the aforementioned distribution companies shares before October, reports Prensalibre.com (March 26, 2012). A year before the expiration of the 15 year term referred to in the preceding clause, the regulator will convene a competitive process of free competition, in accordance with Article 58 of Law 6, for the sale of majority shares in the company holding the concession", reads the chapter on the companies contract. Analysts say the Panamanian electrical system was able to modernize because of the investments in improving services for users. Following a tender, the three distribution companies paid about $300 million in total for the concession. Now it is expected that for the second award, to be convened in 2012, the offer will be higher. Although the state will not receive anything from this sale, it will allow the government of President Ricardo Martinelli - a constant critic of the electricity companies - to draw up a contract with new parameters.

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Title Annotation:PANAMA
Publication:Caribbean Update
Article Type:Brief article
Geographic Code:2PANA
Date:May 1, 2012
Words:194
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