Argentina announces US$1bn sale of energy stakes

Wednesday, November 1, 2017

The Argentine government plans to raise at least US$1bn from the sale of stakes in electricity generation and distribution assets, according to a presidential decree published on Wednesday.

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The government's official gazette said the energy ministry will sell shares in power generators Central Térmica Guemes and Central Puerto in addition to four other non-listed utilities starting in 2018.

A new company, Integración Energética Argentina SA, will absorb the shares, and assume responsibility for a raft of projects. Among them are two hydroelectric plants in Patagonia, the Rio Turbo thermal station and four gas pipelines, including the Noreste Argentino GNEA project, according to state news service Télam.

The government also announced it changed the names of the Néstor Kirchner and Jorge Cepernic hydroelectric projects on the Santa Cruz river to Cóndor Cliff and Barrancosa, respectively.

Wednesday's announcement came less than two weeks after Argentina's ruling Cambiemos coalition won mid-term congressional elections, strengthening the mandate for President Mauricio Macri's (pictured) pro-business reform program.