Colombian Isagen Interested in Guatemala Power Project

Colombian state-run electricity generating group Isagen is interested in participating in the tender for the construction of a power plant in Guatemala, the daily Portafolio said on March 10, 2008.

The tender will be organised by Guatemala’s national electrification institute INDE and is expected to take place by the end of the current year. The plant will be called Xalala and its construction has been postponed a number of times so far due to the opposition of Guatemalan environmentalists.

Xalala is expected to be the second largest power plant in Guatemala with an installed capacity of 180 MW and investments in it are seen standing at between $350 mln (226.33 mln euro) and $400 mln (258.67 mln euro).

Other companies, interested in participating in the tender, are U.S. AES and Spanish Union Fenosa, Iberdrola and Endesa.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: March 11, 2008


Guatemala President Rules Out Nationalisation of Electricity Distribution Services

The President of Guatemala, Alvaro Colom, ruled out the nationalisation of electricity distribution services that have been in the hands of Spanish power utility Union Fenosa since 1998, Guatemalan media reported on March 6, 2008.

The statement was in response to the proposal of 23 Guatemalan MPs of the centre-left National Union for Hope (UNE) for reduction of the costs for electricity distribution, affecting 50 pct of the poor population of Guatemala.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: March 7, 2008


Arrival of Grupo Fersan reactivates war of the sodas

After analyzing during three years the national market, Grupo Fersan of Mexico was decided to invest to US$7 million in a embotelladora plant in Escuintla, that will supply from Guatemala to Panama.

Arturo Roldan, manager of Fersan Central America, indicated that the Mexican producer was decided by Guatemala (also analyzed El Salvador) by its proximity with Mexico, which facilitates to transport some raw materials from that country. To count on skilled labor with experience in the industry of beverages and its sugar production.

Grupo Fersan is a small regional, original producer from the state of Puebla.

The strategy of Fersan remembers to the Peruvian Ajegroup and Big Cola, that arrived at the country in 2005 with a presentation of 3,3 liters and in a short term it was made as opposed to of a participation of market Coca-Cola, Pepsi and Super Cola.

The arrival of Fersan does not worry to Jose Raul Gonzalez Merlo, financial vice-president of Cabcorp. "Guatemalans have greater preference by Pepsi-Cola, that shows the 40 percent of the market", it affirms.

The 60 remaining percent disputes it: Coca-Cola, with a participation of market of the 30 percent; Salvavidas, with a 20 percent of participation with Super Cola; the Peruvian Ajegroup, with a 10 percent of the market with Big Cola and First; and the rest, Embotelladora San Bernardino, India Quiche' and private marks.

Although Roldan assures that it does not interest to him to enter a direct competition with the embotelladoras, already initiated a new war of prices when sending its presentation of 3,3 liters to the price more under the market (Q9.50), a Q2.50 below its rivals.

Publication: El Periódico (Guatemala)
Provider: El Periódico
Date: March 4, 2008

This translation has been prepared using machine translation software, which has been enhanced with a specialized dictionary.

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