Gas Distribution In Colombia

The creation of the Empresa Colombiana de Gas, ECOGAS is being studied by the Congress; a company that would guarantee, on free access and efficient operation conditions, the natural gas transportation service through the pipeline infrastructure to producers, distributors, power generation plants and industry, as well as the development of the Gas Transportation Coordination Center and the contracting with users. ECOGAS would be privatized in the future. Four concessions for the exclusive areas of natural gas distribution have already been awarded, being the areas of Centro and Tolima currently open for bidding and the areas of Cundinamarca and Boyaca expected to be offered in July, 1997. Within the opening of the distribution sector to private investors the concession contracts are being awarded to bidders offering the lowest distribution tariff during each of the first 5 years and the concession firm must operate as a regulated Public Utility Service.

Prepared by Alejandro Linares and Gonzalo Alvarez from Gomez Pinzon & Asociados. These notes are intended to provide only a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

GOMEZ PINZON & ASOCIADOS
Carrera 9 No. 73-24 Pisos 1, 2, 3 y5
Santafe de Bogota, Colombia

Telephone: 571 - 310 7055/5066
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