Peru's UPP Party Plan Includes Energy Nationalization

The UPP party of nationalist Peruvian presidential candidate Ollanta Humala will call to nationalize energy supplies if Humala wins the June 4 second round elections, local paper Gestion reported.

"Hydrocarbons, gas, electricity, basic services - water and sanitation - commercial airspace and ports will become strategic activities put to the service of Peruvian citizens. Strictly speaking, we can say they will be nationalized," UPP chief governmental planner and VP presidential Gonzalo Garcia was quoted as saying.

Peru's nationalization process will be different from Bolivia's, Garcia said, adding that contract conditions are to be analyzed and redefined, which will affect public-private partnerships, private investment and concessions.

Internationally, high-ranking US government officials and Wall Street executives have already begun to warn about the negative effects of nationalization in the Andes region, calling on the rest of Latin America to commit to democracy and economic development.

IMF deputy director Anne Krueger also warned about the negative impact of new political policies in these governments, Gestion reported.

Ollanta Humala was the frontrunner in the country's first round of elections in April, when he obtained 30.6% of the vote. He comes up against former President Alan Garcia, who obtained 24% in the first round.

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