Mexico’s Energy Regulatory Commission (CRE) issued the Queretarogas distribution permit to Belgian electric utility Tractebel.Tractebel was awarded the permit as a result of the bid processundertaken by the CRE for the geographic zone, which comprises themetropolitan area of Queretaro, as well as the city of San Juan delRio.

The bid package established the winner’s obligation to acquirethe assets of Distribuidora de Gas de Queretaro (Digaqro), acompany previously owned by Pemex Gas y Petroquimica Basica (PGPB)that has distributed gas in the area since 1968. Before receivingits permit title, Tractebel paid US$31 million for the divestedDigaqro shares and for PGPB’s distribution infrastructure in thegeographic zone. This investment is part of the US$47.2 millionthat will be used to develop the distribution system.

The Queretaro permit is valid for 30 years and is renewableevery 15 years. The permit grants exclusive distribution rightswithin the geographic zone for five years.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.