President Alejandro Toledo has declared a month-long state of emergency in southern Peru, after three days of violent protests. Residents in Arequipa turned violent on Friday when the government went ahead with its auction of Egasa and Egesur [sold to Tractebel, Group Suez SA], two public utility companies based in southern Peru. The protesters say privatization will lead to layoffs and higher utility bills. President Toledo says the sale is necessary to encourage domestic and foreign investment and create economic stability. During the 2001 presidential campaign, Mr. Toledo promised not to privatize utility companies.

Source: Transnationale.org / Water Observatory, 17 Jun 2002