Bolivia says it's nationalizing electrical grid

[Judi Lynn]

Source: Associated Press

May 1, 2:25 PM EDT
Bolivia says it's nationalizing electrical grid
By CARLOS VALDEZ
Associated Press

LA PAZ, Bolivia (AP) -- Bolivia's President Evo Morales announced Tuesday that his government is completing nationalization of the country's electricity industry by taking over the bulk of its electrical grid from a Spanish-owned company.

Morales also took advantage of the symbolism of May Day, the international day of the worker, to order troops to take control of installations of the company, a subsidiary of Red Electrica Corporacion S.A.

"We are nationalizing the Transportadora de Electricidad in the name of the Bolivian people as a fitting homage to the workers who fought for the recovery of our natural resources and basic services," Morales said during a ceremony at the presidential palace.

"We invested $220 million in generation and others profited. For that reason, brothers and sisters, we have decided to nationalize electricity transmission," he said.

Read more: http://hosted.ap.org/dynamic/stories/L/LT_BOLIVIA_ELECTRICAL_GRID?SECTION=HOME&SITE=AP&TEMPLATE=DEFAULT

[cstanleytech]

1. There are both benefits and risks though with nationalizing which I do hope they have considered.

Benefit: It hopefully helps control and or bring down the cost of the electricity for the people.
Risk: They might have trouble getting foreign governments to lend them money and or luring foreign corporations to invest since the corporations have a legit worry about the government taking their property.

[limpyhobbler]

2. They may actually be better off in the long run if they don't get loans from foreign governments.

I hear the interest payments on those international loans can be a real bear.

[TBF]

5. +1 nt

[cstanleytech]

10. Maybe, maybe not. If for example a disaster should happen be it earthquake or say a drought or

something that was to cause crops to fail they might need a loan but be unable to get it as the banks have a legit reason now view them as an unreliable credit risk.
Like I said its just a benefit vs risk issue and I just hope they considered it carefully.

[zipplewrath]

8. They may be compensated

The article states that compensation negotiations will take place. It also mentions that the government has invested way more than the private sector. And this is something that was only privatized in the '90s.

This could be far less damaging as long as they compensate the companies for their capital investments.

[RufusTFirefly]

3. Great idea. Now how long before the US press starts referring to Morales as "Bolivian strongman"?

The world's foremost imperial power can't be pleased with the precedent this sets.

[Cleita]

4. Good! Basic services utilities should not be in the hands of profiteers.

We should follow suit at a county or state level. I hope Morales doesn't get assassinated or something. He has been very good for Bolivia IMHO.

[madokie]

6. Yes he has

[hack89]

17. Lets hope that Bolivia has the money and other resources to maintain and grow the system

that's the danger here - infrastructure is expensive and requires specific skills to manage.

The Venezuelan oil industry should serve as a warning here - oil production has been steadily declining for nearly a decade due to the lack of foreign investment and expertise.

[Cleita]

18. That is the difference. Big international and American oil interests don't want Chavez

in power because they don't want the oil to benefit the common people, which is what Chavez wants. There are no big international utility interests that give much of a hoot about what Morales is doing in Bolivia. I'm keeping my fingers crossed that this remains so.

[marmar]

7. Latin America is setting the example.......

Extract the multinational leeches -- it will do you a world of good.

[progress2k12nbynd]

9. Is there a purchase price in situations like this?

Or are the original investors/employees just SOL?

And how do we duplicate in the USA?

[cstanleytech]

11. There is almost no chance it will happen here or atleast not unless there was a major shift in the

legislature as well as the courts and I dont think thats likely to happen, not impossible mind you just unlikely.

[Prometheus Bound]

12. They negotiate compensation.

But it usually seems to be a rather long process according to this article. I guess the preferred 'win-win' goal doesn't necessarily work in these sorts of negotiations.

[Judi Lynn]

13. Bolivian president puts electricity back in public's hands

Bolivian president puts electricity back in public's hands
Wednesday 02 May 2012
by Our Foreign Desk

Bolivian President Evo Morales announced yesterday that his government is completing the nationalisation of Bolivia's electricity sector by seizing a Spanish firm's stake in the grid.

Mr Morales told crowds massed outside the Government Palace for a May Day rally that bringing the country's power grid back into public ownership was "a fair homage to the workers and the Bolivian people who have fought for the recovery of their natural resources and basic services."

The Movement for Socialism (MAS) government has contacted Spanish authorities to assure them that it will deliver fair compensation for the take-over of Red Electrica Espanola's (REE) assets.

It has tasked an independent auditor with setting compensation to be paid to the Spanish company within 180 days.

More:
http://www.morningstaronline.co.uk/news/content/view/full/118538

[Citizen Worker]

14. When will we invade and occupy?

[Comrade Grumpy]

15. Bravo, Evo! His political party is called the Movement to Socialism.

[nanabugg]

16. Good for them!!! We could learn a lot from our neighbors to the south. nt