AES Communications Bolivia SA (AXL)

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On November 28, 2001 the Bolivian telecommunications market was liberalized with the implementation of a multi-carrier system. AES Communications (a subsidiary of AES Corporation) entered the newly liberalized market through a US$39 million investment, acquiring the assets of a La Paz-based data transmission company as well as the licenses and concessions necessary to offer long-distance telephony, data transmission and internet services to the Bolivian retail market as well as wholesale transportation services to other carriers. In 2001, local Bolivian telecommunications cooperative Cotel acquired 15% of AES Communications Bolivia to join AES in their efforts to roll out service in the newly liberalized market. In it's first two years of operation AES Communications built 2,000 km of fiber optic cable to provide international and long distance service. The company arranged for a IDB loan of about $40 million at end of 2002/2003. In December 2002, Cotel broke off its partnership with AES. In August 2004 AES sold its stake in the project to a group of investors from the United States (Bill Delfos, Ilda Ochoa, Mark Leeland, and Peter Brekfield) and Bolivia (Giovani Ortuno, Sergio Gottret, and Castell Quiroga) for an undisclosed amount of money. The name of the project did not change as a result of the sale. None None