Suez, the largest water services corporation in the world, is leaving Bolivia after an open-ended civil strike called by Federation of Neighborhood Committees (Juntas Vecinales (FEJUVE)) of El Alto. The reason that led to the demand that Suez-Aguas de Illimani leave Bolivia was the refusal by the multinational company to invest in broadening potable water service to the 200,000 poor people of the city of El Alto and instead, its imposition of a price increase for connection to the water and sewage system to US$445.00 - a sum completely out of the reach of the 70,000 people who were not connected inside the area "served" by
the company. Suez-Aquas de Illimani wanted the Bolivian state and international donors to find them donations and credit to comply with the necessary service expansion inside the area covered under the contract. The population of El Alto answered this demand with the
position that these donations and credit should go to a national public (state-owned) company and not to a multinational corporation making huge profits off of what is a human right of all citizens.
The Bolivian government tried two consecutive times to revise the Suez-Aquas Illimani contract. The answer of the corporation was "...we reject the power of the Superintendent of Basic Sanitation and of any other authority of the Bolivian Republic for this aforementioned supposed 'revision.'" (29/XI/04). Faced with this situation and with the
magnitude of the strike which lasted for three days, the Government issued a Supreme Decree for the termination of the contract with Suez-Aguas de Illimani not only in the cities in El Alto, but in La Paz as well since the systems are joined.
The strike was a success because of its unity, force and peaceful character. More than a "water war" it was a "water uprising" where there were no dead or injured, because the entire population came out to block the streets in all of the neighborhoods in El Alto demanding that water be a public service and not a private business.
During the next months the old municipal company will take charge until a new community company is constituted with the participation of neighbors and under the community control of the neighborhood federation (FEJUVE). Suez-Aguas del Illimani has not accepted the termination of the contract and is prepared to table a multi-million dollar suit
against Bolivia in the International Center for the Settlement of Investment Disputes (ICSID) of the World Bank. It is notable that the World Bank owns 8% of the stock of Aguas del Illimani through the Bank's private arm, the International Finance Corporation (IFC). In other words, if this challenge goes forward, the World Bank will be both judge and party to the case. Faced with this new outrage that Suez seeks to commit, it is crucial to initiate a campaign in France (where Suez is based) and all over the world against this corporation, which is among the leaders in companies that have brought the largest number of cases against developing countries.
FUNDACION SOLON
Av. Ecuador 2519
Tel y Fax 591 2 2417057 - 591 2 2417953
funsolon@funsolon.org
www.funsolon.org
LA PAZ - BOLIVIA
