There are Japanese, Asian and European firms that have expressed a significant interest because our electricity growth rate is relatively high

Vincent Perez Energy Secretary

"We feel its a matter of credibility, both domestically and to our international investors, that we show our political will in this path of power restructuring," Energy Secretary Vincent Perez told the BBC's World Business Report.

The final approval for the sale of Napocor is still necessary but now considered a formality.

The privatisation of Napocor will open with the sale of the transmission monopoly Transco in the middle of the year, followed by the power generation assets by early 2003.

Napocor, with debts of about $6bn, badly needs the money and will auction 70% of its assets, worth $5.2-6bn.

Enron fears

Some analysts believe the privatisation may be hampered, coming so soon after the bankruptcy of US energy giant Enron.

But Mr Perez said the collapse may broaden the bidding.

"It may depress the capital raising ability of some of the US independent power companies," he said.

"On the other hand there are Japanese, Asian and European firms that have expressed a significant interest because our electricity growth rate is relatively high."

Mr Perez said the final approval would send a signal to investors that the government was serious about its economic reforms.

"What we have decided to do is start with one of our better assets which is Transco, our transmission monopoly," he said.

The Electric Power Industry Reform Act will split the power business into four different sectors - generation, transmission, distribution and supply - in an effort to try to encourage competition and promote efficiency.