AES Withdraws From Peruvian Bidding Process

AES has withdrawn from bidding for two Peruvian state owned power generators a day after widespread protests against the sale, throwing into doubt the government's ability to proceed with a sale. The Arlington, Virginia based AES said in a statement it withdrew from the planned sale of Egasa and Egesur because it is “selectively” limiting near term investments. “We believe it is better to reserve our capital for other opportunities,” said AES Vice President Richard Bulger. Recent protests in Peru against the sale did not influence the company's decision, he said. AES is the second company to pull out of the planned auction in a week after Duke Energy quit on May 8th, saying conflicts with Peru's electricity regulator prevented it from participating. Yesterday, tens of thousands of Peruvians staged protests against the sale from concern over job cuts and possible rate increases.

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