The privatization process of Brazilian power generator Cesp will not go forward this year, Cesp CEO Guilherme Cirne de Toledo told a webcast.
"We don't know if or when the privatization process will be resumed," Toledo said.
São Paulo's state government, which controls Cesp, earlier this year called off the March 26 auction to privatize the power company. The state had planned to sell 7.0mn of its preferred and 85.9mn ordinary shares in the company that is São Paulo's leading power producer.
The auction failed because companies had trouble securing loans to bid for Cesp, local press at the time quoted São Paulo state governor José Serra as saying.
Power companies expressed concern in the days leading up to the auction that there was no guarantee Cesp's Jupiá and Ilha Solteira plants would secure concession renewals. The two have combined capacity of 5GW.
Power companies are trying to persuade Brazil's government to renew concessions earlier, the Cesp CEO said.
