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Technology News Fri, 19 Nov 1999, 9:41am EST

Chile Spends About $1.5 Billion to Avert Year 2000 Computer Snafus By Athena Jones

Chile Spends About $1.5 Bln to Avert Year 2000 Computer Snafus

Santiago, Nov. 19 (Bloomberg) -- Chilean companies and public services have spent an estimated $1.5 billion to ensure their computer systems won't break down when the year 2000 arrives, according to a government report.

GasAtacama SA, the natural gas pipeline, said it spent at least $15 million. The company is among the roughly 87 percent of Chilean banks, utilities and other industries that have replaced obsolete equipment and software and are testing contingency plans for the new year.

``It's a large investment, but a necessary one,'' said Sigde Araya, spokeswoman for GasAtacama, which is owned by Chile's Endesa SA and U.S.-based CMS Energy Corp.

Because most computers were designed to record dates using only the last two digits of the year in order to save in their memory banks, countries worldwide have had to revamp software to avert breakdowns caused by misreading 2000 as 1900 on Jan. 1.

Chilean government institutions have spent about $140 million to prepare for the new year, according to the government. The changes have cost public utilities and small and medium-sized companies $300 million each. And the financial services industry and large companies have each spent an estimated $400 million.

Transbank SA, a company that administers credit and debit cards for 22 Chilean banks and financial institutions in Chile, spent between $500,000 to $1 million on its year 2000 project, said Carlos Rios, Manager of Development and Technology.

``Every company has to be prepared just in case there is some problem because there are services that can't stop,'' said Andres Bravari, a member of the government committee assembled to address the problem. ``Electricity, banking and health services are services that can't stop.''

-- Uncle Bob (UNCLB0B@Tminus42&counting.down), November 19, 1999