Proinversion could re-schedule Yuncan auction in 20-30 days

Peru's state investment agency ProInversion could re-schedule its bidding deadline for the 130MW Yuncan hydroelectric project in Pasco department in 20-30 days, economy minister Javier Silva Reute said, local daily Gestion reported. ProInversion was scheduled to receive bids on January 17 from three-qualified bidders - US-based power company PSEG, local mining company Volcan and Belgian utility Tractebel - but postponed the deadline at the last minute. According to ProInversion, an investment bank advising on the process recommended that the auction be postponed to give bidders more time to finish their studies. ProInversion denied that a general strike in Pasco region to protest the privatization was behind the postponement. Pasco's president Raul Espinoza has proposed that the regional government take over the construction of the project, which is 56% complete, and obtain a share in the plant's operating concession. However, the federal government rejected Espinoza's plan and ProInverison could re-schedule the bidding deadline without first reaching an agreement with the regional government, the paper reported. ProInversion would neither confirm nor deny the report, when contacted Tuesday by BNamericas. Tractebel recently pulled out of a US$167mn agreement to buy generators Egasa and Egesur in the south of Peru, due to legal problems and local protests against the privatization. According to Peruvian press, Tractebel may now turn its attention to Yuncan to expand in Peru's generation market. Tractebel spokespeople could not be reached for confirmation. Yuncan is located 200 miles (320 km) north of Lima, and is due to start operations by end-2004.