The term for receipt of offers has been postponed initially to September 19, 1997 but it has been known that it may be extended up to October 15, 1997, day in which the public bid will be closed.
The concessionaire will be in charge of rehabilitating and maintaining the 1.200 kilometer railway during the next 30 years and will have the obligation to operate the railway to this Caribbean port with its own equipment.
The cost of the rehabilitation of this railway has been estimated in US $ 205 million. The National Government has agreed to supply approximately US 140 million of the estimated cost.
It has been known also that the power generation operation of ISAGEN, the largest generation company in Colombia may be privatized. However, the sale of ISAGEN would not occur before next year and the company's board of directors is evaluating the most adequate strategy to be followed with their investment advisors. ISAGEN participates in the Miel and the Guavio hydroelectric plants, as well as in other units that make up the Antioquia generation power chain.
Together with these projects, CARBOCOL S.A. a company dedicated to the exploitation of coal in the famous Cerrejon field will also be privatized. It is expected that the sale of fifty per cent of the shares of this very attractive coal operation will raise several hundred million dollars.
Prepared by Alejandro Linares C from Gomez Pinzon & Asociados Bogota, Colombia.
The content of this article is intended to provide a general guide but specialist advice should be sought about your specific circumstances.
GOMEZ PINZON & ASOCIADOS Carrera 9 No. 73-24 Pisos 1,2,3 y 5 Santafe de Bogota, Colombia Telephone : 571- 3107055/ 5066 Facsimile : 571- 3106646/6657 http://ourworld.compuserve.com/homepages/GOMEZP_LAW