No Ruling on Aguas del Tunari Case Yet Written on November 29, 2004, by Eddie.
Speculation arose last month that the international tribunal, (Icsid) from the World Bank was ready to hand down a ruling concerning Aguas del Tunari. Speculation also followed that the ruling wouldn’t be very favorable for Bolivia. As you may remember, the “Guerra del Agua” in Cochabamba forced the Banzer adminstration to scrap privatization plans for that city’s water system. In turn, the consortium, with Bechtel at the forefront, sued the Bolivian government, a move now legal because of a previously-signed agreement.
However, no ruling appears imminent. In addition, it appears as if Bechtel has reached an agreement with the Bolivian government, but the other member of the consortium is still looking for financial damages.
The deputy minister denied there was any substance in local press reports that the government was on the point of losing the case, meaning it would have to pay US$25mn in compensation.
“The tribunal has not yet decided whether it is competent to hear the case let alone decide its merit,” he said.
What made the murmurings even more a cause for concern was that in coincided with the debate about the Hydrocarbons Law. Some said the rumors of a huge cash reward to the consortium was a sign of things to come, if and when, the Congress forced the oil companies to adhere to the new law unwillingly.
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