Latin America round-up

16/03/2006 | Emerging Markets Reporters

Brazil, Aregentina and Venezuela plan $25 billion oil pipeline; Mexico invests in electricity, new banking regulator in Chile

Brazil, Argentina and Venezuela plan to create a multinational company to build and manage an 8,000km pipeline linking the three countries, Brazil's mines and energy ministry said in a statement.

The three countries decided last week to divide equally the initial US$9.2mn cost of the project's development studies.

Venezuela's state oil company PDVSA will be responsible for the selection and hiring of international consultants to carry out technical and engineering studies, while Brazil will coordinate environmental impact studies, the statement said.

Total investment in the project is estimated at some US$25bn. Initial feasibility studies are expected to be concluded in July.

 

Mexico's Vicente Fox administration will oversee public-private investments of some 50 billion pesos ($4.7 billion) this year in electricity projects, 48% more than the total amount invested during the six years of the previous administration, the presidential press office said in a statement.

Fox officially started operations on Monday of state power company CFE's expanded Hermosillo thermoelectric plant in northern Sonora state, which has been converted to combined cycle from turbogas, as well as a new CFE customer service center in Sonora.

Fox's administration has overseen the start of operations of 32 new power generation plants to guarantee power service throughout the country since 2000, when he took office, representing public and private investments of $8 billion, the statement said.

 

Chile's new President Michelle Bachelet has confirmed Gustavo Arriagada as local banking regulator and appointed 34 year old lawyer Alberto Etchegaray as head of securities and insurance regulatory agency SVS. Etchegaray will succeed Alejandro Ferreiro, who took over in April 2003.

 

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