Chile

Currently, there is little investment by foreign companies in Chile's electricity industry. Despite the similarity between Chile's electricity deregulation and the deregulation/privatization in Argentina, Bolivia, and Peru, notably less investment has been made in Chile. Perhaps part of the reason is that Chile's privatization preceded these countries' privatizations by several years. Chilean electricity companies, however, are making numerous investments in other Latin American countries' electricity industries.

Some foreign investment is occurring in Chile. Southern Company, through its international affiliate, Southern Electric International, increased its ownership in the northern Chilean generation and transmission utility, Edelnor. Further, Chile's state copper company is offering 25 percent of one of its power plants for sale. Other companies with investment projects in Chile include the U.S. electric companies Duke Power, which invested in gas-fired power generation, and Entergy, which invested in power generation (Table 8). Although little foreign investment in Chilean electricity currently exists, a substantial increase in its generating in capacity may occur in the next few years. By October 1995, four U.S. companies had announced plans to build four gas-fueled plants in Chile {see Endnote 276}.