BMI View: The outlook for the Venezuelan power sector is bleak, with a very tight power supply/demand balance leading to power outages and blackouts. Problems stem from years of insufficient capital investment in generation capacity under Chavez’s socialist regime, and huge losses from aging and extremely inefficient T&D infrastructure, which is in desperate need of upgrading. With the investment climate considered one of the worst in Latin America, we do not anticipate the situation will improve dramatically, despite the Vice President paying lip service to the idea of drawing in private investment. In spite of repeated promises by the government, …
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