Tuesday Feb 14, 2023 - Colombia - Government and National Liberation Army Talks, Energy decline, Viva-Air take over, Chinese Colombian Investments

These are the Trending Colombian news headlines on Tuesday February 14, 2023.

Talks between Colombia's government and the National Liberation Army (ELN) rebels have resumed in Mexico City. Despite President Gustavo Petro's optimism, tensions have risen since the last round of talks in Caracas ended in December. Doubts are growing among those in militarized conflict areas who question the effectiveness of the ceasefire. Experts say the peace effort remains the 'best choice among bad options.'

In Colombia, President Gustavo Petro's recent actions have caused power generation projects to decline by over 20%. The energy ministry's planning unit, UPME, currently has 278 active projects in its registry. Solar power has seen the biggest decline, with wind and planned new thermoelectric capacity also dipping. Hydropower proposals have shifted towards smaller developments. The decline coincides with fears of government interference eroding investor confidence, as the administration has proposed temporarily assuming regulatory powers for the electric power sector. This has drawn criticism and raised concerns about an investor exodus. Fitch Ratings says political interference remains a concern for electricity generation and distribution.

Chile's JetSmart CEO, Estuardo Ortiz, has expressed interest in acquiring struggling Colombian low-cost carrier Viva Air. In a LinkedIn post, Ortiz said the Santiago-based airline is interested in acquiring 100% of Viva Air's shares to strengthen free competition and the low-cost model in South American air travel. Viva Air had filed for protection from creditors and the Colombian version of bankruptcy. The airline has 90 days to restructure its debts and achieve permanence in the market. JetSmart believes in Colombia's growth potential and aims to contribute to its development and connectivity with its model.

Chinese state-controlled companies have been awarded key infrastructure projects in Colombia and are looking to expand their presence. This has come as a result of trade agreements between Bogota and Beijing between 2008 and 2019 and China's growing imperial ambitions. These projects were facilitated with the help of local elites and former Colombian President Ivan Duque following his visit to Chinese President Xi Jinping in 2019. Since then, foreign investment from China has skyrocketed and many Chinese workers have come to Colombia to work on these projects. The extent to which Chinese state companies have control over Colombia's critical infrastructure remains shrouded in secrecy. The Chinese Small and Medium Business Corporation (CVCC) is planning to make Colombia "the first Chinese warehouse in America" through its Sol de Oriente project, which includes a tax-free trade zone with 25,000 warehouses, a seaport, and an airport on the Caribbean coast. The project would also aim to offer "international education" teaching locals Mandarin. This is the latest of four port construction proposals in Uraba, which has access to both the Caribbean Sea and the Pacific Ocean. Three of these Chinese-backed projects are yet to be approved.

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