[Congressional Record Volume 145, Number 147 (Tuesday, October 26, 1999)]
[House]
[Page H10771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  EL SALVADOR'S DRIVE TO PRIVATIZE SHOULD BE RECOGNIZED AS A JOB WELL 
                                  DONE

  Mr. BALLENGER. Mr. Speaker, I have a longstanding interest in the 
growth and prosperity of one of our most important Central American 
neighbors, the Republic of El Salvador. Today, I would like to 
recognize the impressive privatization process that is going on in El 
Salvador, with a particular emphasis on the country's successful 
privatization program.
  El Salvador embarked on a major program to privatize the key national 
industries nearly a decade ago. Since that time, the state electric 
company known as CEL, for Comision Hidrolectrica del Rio Lempa, has 
been a consistent leader in the country's privatization process.
  In 1998, CEL auctioned off 75 percent of the shares of four state-
owned electrical distribution companies for more than $586 million, 
representing the most money earned to date in any privatization in the 
region.
  One of the three winning bidders in this sale was a well-known 
Arlington, Virginia, based energy firm called AES Corporation.
  Last June, this successful privatization program continued with CEL 
auctioning off the majority shares in three state-owned thermal 
generation facilities, Acajutla, Soyapango, and San Miguel, to private 
investors. The winning bid in this sale, $125 million, came from 
another well-known company in the U.S., Duke Energy, which is based in 
my home State of North Carolina. As I speak, Duke is already making 
plans to invest more than $75 million in upgrades to these facilities.
  The most recent sale represents a win/win situation for both El 
Salvador and the U.S. This investment will not only mean more jobs and 
more income for people in North Carolina, but will also mean more 
consistent, cost effective energy for people of El Salvador.
  El Salvador's privatization process, which also includes the state 
telephone company and pension plan, has been successful because 
political parties and labor unions put aside their differences and 
decided to work together to lead the country into a bright and secure 
economic future.
  This unity and sense of purpose is proof positive that El Salvador 
has indeed come a long way since the war-torn 1980s. Other countries in 
the region, and beyond, should be encouraged to follow in the footsteps 
of El Salvador.
  In closing, I would like to extend our best wishes to El Salvador for 
a job well done, as well as wish the country, and particularly 
President Francisco Flores, continued success in the drive to privatize 
and bring increased prosperity to the people of El Salvador.

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