Tacna would sell Egesur concession for US$50mn

Peru's Tacna department government is prepared to put generator Egesur under concession for a minimum of US$50mn as long as the company's administration is initially transferred to its control, newspaper Gestion quoted department president Luis Alva as saying. Tacna would make the company more competitive, and then raise the minimum price of the concession to US$50mn from the US$20mn offered by state investment agency ProInversion, which Alva called a "present" to investors. "The only thing that ProInversion wants is to liquidate the company," he said. Alva has not yet received any response from the economy ministry and state business promotion fund Fonafe to his suggestions, he was quoted as saying. Belgium's Tractebel agreed to buy Egesur and fellow generator Egasa for US$167mn in June 2002, but pulled out in January 2003 due to local opposition and protracted legal hearings. Egesur has 35.7MW hydroelectric generation capacity and 26.7MW thermoelectric capacity.