The Panamanian government will start the bidding process a year before expiration of concessions, which will include the purchase of 51% of the shares of each of these companies.
Prensa.com writes that Dennis Moreno, administrator of the National Authority for Public Services (ASEP), has stated: "Offers made by companies participating in the bid process in 2012 shall be paid to current concession owners. Although the state does not receive anything from this sale, it will allow it to negotiate with new parameters without violating legally established contracts."
Conditions of the existing concession contracts with electricity distributors have been classified as "one sided" because of benefits granted to companies.
Asep is preparing a request for candidates which will counsel on the sale of 51% of the shares in control of Edemet, Edechi and Elektra Noreste.
The verification commission has concluded that all of the companies interested in buying the 51% stake in the electricity distributors are eligible to submit bids.
"The commissioners began evaluations on July 14, after the National Authority of Public Services (ASEP) received documentation from companies interested in the stake, including proposals from the existing concessionaires Gas Natural Fenosa and Elektra Noreste SA who wish to continue offering the service," reported Prensa.com.
Two Colombian companies have submitted pre-qualification documents for the purchase of 51% of the shares of the electricity distributors Edemet and Edechi.
Promigas and Empresa de Energía del Pacífico S.A., presented the documentation to the National Authority of Public Services (ASEP) as part of the tender for the sale of the majority of the shares of the distributors, a concession contract for 15 years which expires October.
The possibility of a change of hands of concessions for electricity distribution in Panama, has not hindered the projects for expansion of the system.
The demand for electricity in Panama is growing annually between 7 and 8%, and the three distributors, Edemet, Ensa Edechi have investment plans, which together total $480 million, to expand their networks over the next few years.
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