US$80 billions will receive Latin
America for privatization in 1998
Some 170 state-owned enterprises in Latin America will be transferred to the private sector in 1998 in financial privatization operations that would amount to US$ 80 billion. This number doubles the amount received from privatization in 1997 and meets the total income received by the region from this concept in the last five years, according to a recently released study by the Chilean Chamber of Commerce.
The study identifies Brazil and Argentina as the leaders of this second wave of privatizations in the subcontinent since the 1980s. Brazil plans to privatize 29 government-owned companies in 1998, led by the telecommunications conglomerate Telebras, for which it expects to receive close to US$ 18.930 millions. This is considered the biggest privatization in Latin America this year.
Argentina is also in a privatization process that expects to sale 41 state enterprises headed by the binational hydroelectric plant of Yacyret and Banco Hipotecario for an estimated global amount of US$7.3 billions.
- "Contrary to Brazil, in Argentina there is little left to privatize. Only the banking and energy sectors and a series of sanitary companies whose concession mechanism are still not clear, are the only areas left for privatizations", the study says.
Third in the list of big privatizers this year in Latin America is El Salvador, that is scheduled to sale public assets for US$ 2.374 million. Among the companies up for sale is the telephone company Antel, according to the study.
In Venezuela, authorities expect to obtain around US$1050 millions for the privatization of horsetracks, ports and tourist enterprises.
In Guatemala, the government offered again this year the telephone company Telegua, after a failed attempt last year. The company is valued in $800 millions.
Also privatizing it’s telephone company is Ecuador, that is expecting to receive around US$ 639 millions for the sale of Emetel.
The privatization of several companies in the energy sector would leave for Peru some US$ 755 millions, while Colombia has plans to sale 17 different state-owned companies for US$ 524 millions.
In Uruguay, where a referendum blocked the privatization to sale the national telecommunications company, there are projects to give in concession the operation of the Montevideo airport and several sea ports for a total of US$ 300 millions.
Chile’s Frei, on his side, announced his plan to give in concession the operation of the country’s sea ports and allow private investment in national drinking water companies.