ANNOUNCEMENT 29 Dec 2012In December 2012, the government of Bolivia announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
Supreme Decree No 1148 (Decreto Supremo N? 1148, 29 de diciembre de 2012): http://www.lexivox.org/norms/BO-DS-N1148.xhtml
Financial Times: http://www.ft.com/cms/s/0/dfc4fb26-51e5-11e2-abb6-00144feab49a.html#axzz2TNDUSQgV
The Argentina Independent: http://www.argentinaindependent.com/currentaffairs/newsfromlatinamerica/bolivia-government-nationalises-spanish-owned-electricity-companies/
On December 29, 2012, President Morales of Bolivia announced with the promulgation of the Supreme Decree No 1148 the nationalisation of 4 electricity companies owned by the Spanish company Iberdrola: two electricity distribution companies (Electropaz and Elfeo) as well as two companies providing services to the distributors (CADEB and EDESER). The Bolivian President justified this measure by arguing that it was 'necessary to ensure equitable energy tariffs ... and to see to it that the quality of electricity service is uniform in rural as well as urban areas'.
The compensation Iberdrola will get for being expropriated will be dependent on the valuation drawn up by an independent arbiter.
The Spanish government reacted and called for fair compensation.