This was Aguas del Tunari, a consortium between the British firm International Waters (55 percent) - itself a subsidiary of the construction giant Bechtel (USA) and United Utilities (UK) - the engineering and construction firm Abengoa of Spain (25 percent) and four Bolivian companies including Befesa/Edison, Constructora Petricevic, Sociedad Boliviana de Cemento (SOBOCE), Compania Boliviana de Ingenieria and ICE Agua y Energia S.A., all involved with the construction and engineering industry.
What is going on with Aguas del Tunari?
The Government of Bolivia and the international shareholders of Aguas del Tunari S.A. (“Aguas del Tunari”) have settled their dispute over the concession for the supply of water services and related contracts to the city of Cochabamba.
What is Aguas del Tunari v Bolivia?
Aguas del Tunari v. Republic of Bolivia, an arbitration before the International Centre for Settlement of Investment Disputes (ICSID), Case No. Arb/02/03.
Who are the partners in Aguas del Tunari?
The company formed a joint venture, called Aguas del Tunari, in which it had a 55 percent investment. Its partners were Abengoa of Spain (25 percent) and four Bolivian companies (5 percent each), including ICE, a major Cochabamba contractor and builder of the Misicuni tunnel as well as a new airport.
What is the Tunari water crisis all about?
The wave of demonstrations and police violence was described as a public uprising against water prices. The tensions erupted when a new firm, Aguas del Tunari – a joint venture involving Bechtel – was required to invest in construction of a long-envisioned dam (a priority of Mayor Manfred Reyes Villa) - so they had drastically raised water rates.
What was the Aguas del Tunari's recommendation?
What was the net effect of the Aguas del Tunari?
How much did Aguas del Tunari invest in capital?
Why was the Aguas del Tunari concession cancelled?
When did Aguas del Tunari file for arbitration?
When did Aguas del Tunari take over service?
When did Aguas del Tunari submit a bid?
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About this website
What was the main reason for Bolivia Water War?
The Cochabamba Water War was a series of protests that took place in Cochabamba, Bolivia's fourth largest city, between December 1999 and April 2000 in response to the privatization of the city's municipal water supply company SEMAPA.
Why did Bechtel charge so much for water?
"Unfortunately, water bills sometimes went up a lot more than rates. That's because as Aguas del Tunari improved service, increasing the hours of water service and the pressure at which it was delivered, people used a lot more water."
Who led the movement called water war in Bolivia?
The government sold these rights for the city of Cochabamba to a multinational company. This protest was known as Bolivia's water war. This protest in Bolivia was led by the organization called FEDECOR.
What do you understand by Bolivia Water War explain its causes and consequences?
The conflict over water in Bolivia germinated with the decision of the government to give up its control of municipal water supply. This was done at the behest of the World Bank. The water supply rights for the city of Cochabamba were sold to a multinational corporation which increased the price of water by four times.
Is water still privatized in Bolivia?
In April 2000, the Bolivian Congress rescinded the 1999 law that permitted water privatization and Hugo Banzer — former dictator turned elected president— canceled the government's contract with Aguas del Tunari. News of Cochabamba's 2000 Water War, as this conflict came to be known, spread among activists across the ...
What is Bolivia Water War Class 10?
But the power of people forced the officials of MNC to leave their city and made government to grant all demands of the protesters. The contract with MNC was cancelled and water supply was resorted to municipality at old rates. This is known as Bolivia's water war.
Who were the water warriors in Bolivia?
The first “water war” gained international attention when the indigenous peoples of Cochabamba, Bolivia, led by a five-foot, slightly built, unassuming shoemaker named Oscar Olivera, rose up against the privatization of their water services.
Who were the participants in Bolivia's struggle for water?
They were supported by a federation of farmers who relied on irrigation, middle class students, confederation of factory workers, unions and the city's growing population of the homeless street children.
How do you play water wars?
Directions:Like the game of War, players turn over one card at a time, the same time as their opponent.Whoever draws the higher card, wins.The winner gets to dump a cup of water on the other player's head. ... If the players get War, the winner of that hand gets to dump the pitcher on the losing players head.More items...
What are the conflicts over water?
The current interstate conflicts occur mainly in the Middle East (disputes stemming from the Euphrates and Tigris Rivers among Turkey, Syria, and Iraq; and the Jordan River conflict among Israel, Lebanon, Jordan and the State of Palestine), in Africa (Nile River-related conflicts among Egypt, Ethiopia, and Sudan), as ...
What factor pressured the Bolivian government to sell the public water system?
The government sold these rights for the city of Cochabamba to a multi-national company (MNC). The company immediately increased the price of water by four times. Many people received monthly water bill of Rs 1000 in a country where average income is around Rs 5000 a month. This led to a spontaneous popular protest.
Is Bolivia in a drought?
Bolivia's drought is lingering after two brutally dry years that saw millions of acres burned by wildfires. In the department of Oruro, dairy farmer Demetrio Martínez said his family business lost two cows this year from drought after losing a total of six in 2019 and 2020. “If they don´t get water, they die,” he said.
Why was there a mass movement in Bolivia three reasons?
The World Bank had pressurised the government in Bolivia to give up its control of municipal water supply. The government sold these rights for the city of Cochabamba to a multi-national company (MNC). The company immediately increased the price of water by four times. This led to a spontaneous popular protest.
Who died in the Cochabamba Water War?
Cochabamba Water War In April 2000, Víctor Hugo Daza, a seventeen-year-old student, was shot in the face by the Bolivian Army while protesting the increase of local water rates due to privatization.
Where is Bolivia from?
South AmericaBolivia, country of west-central South America. Extending some 950 miles (1,500 km) north-south and 800 miles (1,300 km) east-west, Bolivia is bordered to the north and east by Brazil, to the southeast by Paraguay, to the south by Argentina, to the southwest and west by Chile, and to the northwest by Peru.
Is Bolivia in a drought?
Bolivia's drought is lingering after two brutally dry years that saw millions of acres burned by wildfires. In the department of Oruro, dairy farmer Demetrio Martínez said his family business lost two cows this year from drought after losing a total of six in 2019 and 2020. “If they don´t get water, they die,” he said.
Bolivians end foreign-owned water privatization in Cochabamba ‘Water ...
On January 13th, police gassed a crowd waiting for the government to arrive to a town meeting. From February 4th to 6th, soldiers and riot police unleashed teargas on demonstrators and used clubs, injuring 175 demonstrators and blinding 2.
Cochabamba’s Water War: The Start of Other Struggles
In 1985 the Bolivian state, headed by the MNR (Nationalist Revolutionary Movement) proudly pronounced the end of the economic crisis with the Supreme Decree 21060, putting the country on the same neoliberal path that had taken hold in the rest of the world.
Cochabamba Water War - Wikipedia
The Cochabamba Water War was a series of protests that took place in Cochabamba, Bolivia's fourth largest city, between December 1999 and April 2000 in response to the privatization of the city's municipal water supply company SEMAPA. The wave of demonstrations and police violence was described as a public uprising against water prices. The tensions erupted when a new firm, Aguas del Tunari ...
Even the Rain - Wikipedia
Even the Rain (Spanish: También la lluvia) is a 2010 drama film directed by Icíar Bollaín and written by Paul Laverty.. The plot concerns Mexican director Sebastián (Gael García Bernal), Spanish executive producer Costa (), and their group of actors who travel to Bolivia to shoot a film depicting the Spanish conquest of the New World.The members of the Spanish film crew unexpectedly find ...
How much did Aguas del Tunari increase water availability?
Aguas del Tunari managed to increase the availability of water by 30 percent in its short time managing the system. For billings in the month of January (2000), increased water usage amplified for many customers the effect of higher rates.
When was the Cochabamba water concession closed?
Below are some of the most commonly misrepresented and underreported aspects of the Cochabamba water concession, which was terminated in April 2000.
Why did the water rate increase in Cochabamba?
Half the rate increase was necessitated by such government requirements as paying down more than $30 million in debt accumulated by the public utility that had previously operated the system so poorly. Rate increases were also needed to finance proper maintenance and expansion of the water system. Even these rates were comparable to those in other major Bolivian cities.
Does Aguas del Tunari own the aquifer?
It did not charge for water from private or cooperative wells. It did not lease or own the aquifer. The contract was for potable water supply and sewage within urban Cochabamba--not for agricultural areas.
When did Bolivia settle its dispute with Aguas del Tunari?
On 19 January 2006, a settlement was reached between the Government of Bolivia (then under the Presidency of Eduardo Rodriguez Veltze) and Aguas del Tunari, it was agreed (according to the Bechtel press release) that "the concession was terminated only because of the civil unrest and the state of emergency in Cochabamba and not because of any act done or not done by the international shareholders of Aguas del Tunari". With this statement the shareholders withdrew any financial claims against Bolivia.
What was the water war?
The Cochabamba Water War was a series of protests that took place in Cochabamba, Bolivia 's fourth largest city, between December 1999 and April 2000 in response to the privatization of the city's municipal water supply company SEMAPA. The wave of demonstrations and police violence was described as ...
How many hours a day is water available in Cochabamba?
Water nowadays is available only four hours a day and no new households have been connected to the supply network.". Franz Taquichiri, a veteran of the Water War and an SEMAPA director elected by the community, said "I don't think you'll find people in Cochabamba who will say they're happy with service.
When did the La Paz water project close?
The privatization was required to allow a two-year extension of the project that was due to close in 1995.
When did Aguas del Tunari contract get forfeited?
After Aguas del Tunari personnel fled Boli via April 10, 2000, the contract was declared forfeited by Bolivia. Recourse was had to the International Centre for Settlement of Investment Disputes, but before a hearing was had, according to a Bechtel Corporation press release of January 19, 2006, the case was settled. The settlement assigned the cause of failure to perform the contract on both sides to a state of emergency due to civil unrest and awarded no damages to either party [1] .
What was the Cochabamba Water War?
The Cochabamba Water War was a conflict which developed in Bolivia between a private water provider, Aguas del Tunari. a subsidiary of International Waters Ltd, a subidiary of Bechtel Corporation, and its customers in Cochabamba. It is one of the more publicized incidents of conflict over privatization of water systems .
What was the Aguas del Tunari's recommendation?
Although the main portions of the contract were published in the press, Aguas del Tunari strongly recommended to the municipality that it launch an information campaign to inform the population of the changes that were to be implemented. The municipality was to carry out this action but never did.
What was the net effect of the Aguas del Tunari?
The net effect was that Aguas del Tunari did not retain any extra revenue. The first week in April, more protests occurred, both in Cochabamba and in other parts of the country. There were demonstrations against Aguas del Tunari as well as strikes by a number of unions and by police.
How much did Aguas del Tunari invest in capital?
During the same period, Aguas del Tunari invested $10 million in capital. Aguas del Tunari and the Bolivian Ministry of Foreign Commerce and Investment discussed the possibility of negotiating an amicable settlement of Aguas del Tunari’s claims for compensation.
Why was the Aguas del Tunari concession cancelled?
The Government of Bolivia and the international shareholders of Aguas del Tunari declare that the concession was terminated only because of the civil unrest and the state of emergency in Cochabamba and not because of any act done or not done by the international shareholders of Aguas del Tunari (Bechtel, Befesa, Abengoa and Edison).
When did Aguas del Tunari file for arbitration?
After 17 months of attempting to reach an amicable settlement with the Bolivian government, Aguas del Tunari in November 2001 filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID).
When did Aguas del Tunari take over service?
When Aguas del Tunari took over service on November 1, 1999, it was required under the contract to rent fixed assets from SEMAPA and to buy the moveable assets and inventory. These were assets of Aguas del Tunari. The consortium also paid more than $1 million of trading debts incurred by SEMAPA.
When did Aguas del Tunari submit a bid?
Aguas del Tunari submitted a bid in April 1999, just as local water-rights leaders went on record opposing the project. International water companies were questioning the feasibility of the Misicuni scheme.
Background
- Cochabamba is the third-largest city in Bolivia, with some 600,000 people. The city’s population has increased rapidly, mostly due to the migration of citizens from neighboring poor rural areas. This migration has created or exacerbated significant social problems; for example, more than 40 percent of Cochabamba’s population lacks piped water or effective sanitation services. For man…
The Contract
- In fact, Aguas del Tunari’s bid did not meet the terms of the tender, but the government of Bolivia passed a Supreme Decree that allowed for negotiation. Aguas del Tunari engaged in prolonged and highly specific negotiations on the terms of the concession. The government was represented by its Negotiating Committee, whose members came from the Ministry of Foreign C…
Operations Begin
- On November 1, 1999, the concession was finally handed over to Aguas del Tunari. The new tariffs had been made public by the Regulator and were enforceable starting on the first of January 2000, as agreed in the contract. The consortium began to operate, with the immediate goal of reducing network losses and getting as much water as possible from e...
Protests
- In the background were a number of other local, regional, and national economic difficulties, from widespread unemployment to spiraling prices for gasoline and other products. The government’s crackdown on coca-leaf production added to the turmoil. Moreover, national water legislation (unrelated to the Aguas del Tunari concession) placed restrictions on new wells—particularly un…
Aftermath
- When Aguas del Tunari took over service on November 1, 1999, it was required under the contract to rent fixed assets from SEMAPA and to buy the moveable assets and inventory. These were assets of Aguas del Tunari. The consortium also paid more than $1 million of trading debts incurred by SEMAPA. During the concession period November 1, 1999 to April 10, 2000, SEMAP…
Appendix—Rate Structure
- Aguas del Tunari’s regulated rate of return was common for utility contracts of this type in high-risk countries. It’s what banks expect to see. Moreover, the impact of Aguas del Tunari’s return rate on the tariff was relatively modest. Here is an abstract of the residential water tariffs that were used before and after Aguas del Tunari took over managing the concession. All the tariffs …
Overview
The Cochabamba Water War was a series of protests that took place in Cochabamba, Bolivia's fourth largest city, between December 1999 and April 2000 in response to the privatization of the city's municipal water supply company SEMAPA. The wave of demonstrations and police violence was described as a public uprising against water prices.
The tensions erupted when a new firm, Aguas del Tunari – a joint venture involving Bechtel – wa…
Aguas del Tunari consortium
Prior to privatization the water works of Cochabamba were controlled by the state agency SEMAPA. After pressure from the World Bank, Bolivia put SEMAPA up for auction for privatization but not capitalization. Only one party was willing to bid on the project. This was Aguas del Tunari, a consortium between the British firm International Waters (55 percent) - itself a subsidiary of the construction giant Bechtel (USA) and United Utilities (UK) - the engineering and construction firm A…
Economic background of Bolivia
The restoration of civilian rule to Bolivia in 1982 ended decades of military dictatorships, but did not bring economic stability. In 1985, with hyperinflation at an annual rate of 25 thousand percent, few foreign investors would do business in the country. The Bolivian government turned to the World Bank as a last resort against economic meltdown. For the next 20 years, successive governments followed the World Bank's provisions in order to qualify for continued loans from the organization.
World Bank
The World Bank said that "poor governments are often too plagued by local corruption", similarly the World Bank stated that "no subsidies should be given to ameliorate the increase in water tariffs in Cochabamba". The New Yorker reported on the World Bank's motives, "Most of the poorest neighborhoods were not hooked up to the network, so the state subsidies and water utility went mainly to industries and middle-class neighborhoods; the poor paid far more for water of d…
Law 2029
To ensure the legality of the privatization the Bolivian government passed law 2029, which verified the contract with Aguas del Tunari. To many the law appeared to give a monopoly to Aguas del Tunari over all water resources. Many feared that this included water used for irrigation by peasant farmers (campesinos), and community-based resources that had previously been independent of regulation. The law was seen as "enabling the sale of water resources that had never really been …
Rate hike
As a condition of the contract Aguas del Tunari had agreed to pay the $30 million in debt accumulated by SEMAPA. They also agreed to finance an expansion of the water system, and began a much needed maintenance program on the existing deteriorating water system. Dider Quint, a managing director for the consortium, said "We were confident that we could implement this program in a shorter period than the one required by the contract. [To accomplish this] We h…
Protests and state of emergency
Starting in early January 2000 massive protests in Cochabamba began with Oscar Olivera among the most outspoken leaders against the rate hikes and subsequent water cut-offs. The demonstrators consisted of regantes (peasant irrigators) who entered the city either under village banners, or carrying the wiphala; they were joined by jubilados (retired unionized factory workers) under the direction of Olivera, and by Bolivian citizens. Young men began to try to take over the p…
Government view of the demonstrators
The coca growers of Bolivia led by then-Congressman Evo Morales (later elected President of Bolivia in December 2005) had joined the demonstrators and were demanding an end to the United States-sponsored program of coca eradication of their crops (while coca leaf can be heavily refined and made into cocaine it is used legally by many in Bolivia for teas and for chewing). Seeing the involvement of the coca growers, the Bolivian government claimed that the demonstrators were …