The privatization process of the Empresa de Energða del Pacifico - EPSA ended with the sale of 56.7% of its shares for 535.000 million pesos to the Colombian Electricity Ventures, EDC Colombian Energy Ventures and Valle Energy Ventures Consortium, owned by Houston Industries Energy and La Electricidad de Caracas.

Currently, the Colombian Government is reviewing the possibility of authorizing the privatization process of Isag'n, the largest generation company in Colombia, at least with regard to its power generation activities. However, the sale of Isag'n would not occur before next year and in order to determine the most adequate mechanism the company's board of directors agreed to hire an investment bank that will evaluate the company and determine the most adequate strategy to be followed. Isag'n has a share in the Miel and Guavio hydroelectric plants, as well as in other units that make up the Antioquia generation power chain.

Prepared by Alejandro Linares C. and Gustavo Alvarez M. from Gomez Pinzon & Asociados.

These notes are intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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