Distribuidora de Gas del Centro SA

active

Distribuidora de Gas del Centro SA was one of the eight companies created in 1992 from the distribution assets of Gas del Estado, an Argentinean state-owned company. Distribuidora de Gas del Centro was privatized in December 1992, when a 90% equity stake was sold for $138 million to Sideco Americana (67.5%) and Sociedad Italiana Peril SpA - Italgas (22.5%). The consortium paid US$18 million in cash and US$120 million in debt papers valued at their market value. The winning consortium also assumed other liabilities for $39 million. The remaining 10% equity stake was reserved to be sold to company workers, at the same price per share paid by the consortium. In mid-2000, Sideco sold its shares in Distribuidora de Gas Cuyana to its partner in the project Italgas. The winning consortium was awarded with a 35-year concession period and the option to extend for an additional ten years, as long as service quality indicators and investment obligations stipulated in the contract were met. During the period 1993-97, Distribuidora de Gas del Centro invested $31.7 million of which $8.4 million was allocated to improve the security of its distribution facilities. The remaining $23.3 million were invested in expanding its distribution network and improving the quality of its services. These obligations indicated an investment sufficient to meet the required standards during the first five concession years. The standards were based on US standards but adjusted for conditions in Argentina. The conditions for the extension of concession periods were the same for all privatized gas distribution companies. The company invested US$ 28.4 million in 1998, US$ 17.6 million in 1999 and US$ 7.7 million in 2000. Gas del Centro made investments of $4.2 million in 2001.