Financial crisis looming for CFE: Elias

Mexican state power company CFE's liabilities will outgrow assets in 10 years if energy reforms are not approved, company director Alfredo Elias Ayub told the lower house's energy commission this week. "The most pressing needs will be in the area of generation, and with debt growing like it is, liabilities will outgrow the value of assets in less than 10 years," La Reforma newspaper quoted him as saying. CFE's total debt exceeds 15bn pesos (US$1.4bn), though its 20bn pesos in revenues outweigh its 12bn pesos in expenditures, local newspapers quoted Elias as saying. Furthermore, CFE will require between 500bn-560bn pesos in investment over the next 10 years. President Vicente Fox' proposed energy reforms, designed to further attract private investment, are thus greatly needed, congressman Jose Antonio de la Vega, of the governing PAN party, was quoted as saying. The Pidiregas financing plan has also helped CFE's finances, costing the company 12bn pesos while returning 21bn pesos in revenues, Elias said. However, congressman Jorge Martinez Ramos, member of opposition party PRD, said during the meeting that the financing plan places pressure on public investment.