Post-Privatization Renegotiation and Disputes in Chile

Sep 1999
Over the last decade, Chile has undertaken remarkable reforms and transferred publicly owned utilities to the private sector either by selling the assets or through concession agreements. Because of the reforms the country has been able to attract private participation in the provision of public services like energy, transportation, telecommunications, potable water and sewage. In this paper, the authors analyze a series of post-privatization disputes and renegotiations that have taken place in Chile since the late 1980s in the electricity sector. This sector was chosen because the privatization process was, to a large extent, completed a decade ago, providing enough time to properly evaluate negotiations and disputes. The paper also assesses how lessons learned in the reform of electricity were internalized in the design of the regulatory framework for other concessions.