Colombian State Council suspends sale of government stake in Isagen

14 May 2015 (Last Updated May 14th, 2015 18:30)

The Colombian State Council has temporarily suspended the government's plan to sell the majority share in Isagen, which operates the largest hydropower plant.

The Colombian State Council has temporarily suspended the government’s plan to sell the majority share in Isagen, which operates the largest hydropower plant.

Auction of the government’s 57.6% stake in the Medellin-based power developer has been halted until further notice, following the judicial body’s instructions.

The sale was scheduled to take place on 19 May this year, reports Reuters.

This suspension has been ordered as the council wants to evaluate three other appealsm, which ask for government decrees to cancel the sale.

"The sale was scheduled to take place on 19 May this year."

The Colombian Goverment had earlier announced it was tp sell the stake to raise around $2.2bn, which it plans to use in infrastructure development.

Colombia intends to use the proceeds from the sale to develop the country’s infrastructure, including highway development.

Companies including Canadian Brookfield Asset Management, Colbun from Chile, and French power utility GDF Suez offered bids for the stake.

The firms have deposited COP100bn ($42m) in order to qualify for the bid.

Earlier, the Colombian Council of State had suspended the sale in March 2014 after the Tax Justice Network claimed it to be unfavourable for the country.