[A-List] Peru: Privatization protests

[Sabri Oncu <soncu@xxxxxxxxxxx>]

Peruvians protest government sale of two electricity companies
Fri Jun 14, 5:18 PM ET

LIMA, Peru - Protests erupted in two cities in southern Peru
Friday after the government decided to go ahead with the sale of
two state-owned electricity companies in the region.

Police fired tear gas to disperse hundreds of protesters who
gathered in the colonial plaza of Arequipa, chanting slogans
against President Alejandro Toledo and tearing up stone bricks
from the cobblestone streets.

Demonstrators filled the plaza after officials in Lima announced
that the government had sold an electricity-generating company in
Arequipa and another in Tacna to Tractebel, a Belgian company,
for dlrs 167.4 million.

Demonstrations and work stoppages in the two southern cities and
in other parts of Peru, including Lima, demanding the government
call off the privatization have resulted in weeks of delays for
the sale.

The protesters fear the privatization will mean layoffs at the
two companies and higher utility rates.

Television station Channel N broadcast the protests live from
Arequipa Friday, a mountain city of 1 million people 465 miles
(750 kilometers) southeast of Lima. Dozens of people also marched
in the streets of Tacna, 595 miles (960 kilometers) southeast of
Lima, Channel N reported.

The government hopes revenues from this privatization sale and
the sale of at least dlrs 700 million in other state-owned assets
this year will help cover budget needs.

President Toledo said he would not to bow to protesters' demands.

"I will continue managing the economy responsibly," he told a
business luncheon Friday after the protests broke out.

"I will continue firmly with privatizations and I will stimulate
private investment for the creation of jobs," he said.

Full at:
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020614/ap_wo_
en_ge/peru_protests_2