In this paper we describe the successful part-privatization of Empresa de Energia de Bogotd (EEB), the city-owned electricity company in Bogotd, Colombia. We describe the reason, the preparation and the actual sale process as well as the outcome following the part-privatization. EEB went from being a company on the edge of bankruptcy to one of the most financially secure electricity companies in South America. We also place the case in relation to the standard views on direct foreign investment and their social benefit. Finally, we aim to generalize the experience to see what other organizations in a similar position can learn. (c) 2006 Elsevier Ltd. All rights reserved.