water for the people
privatization gone bad in
cochabamba
cer-det/friends of the earth
Bolivia
© tom
kruse
|
“In a poor country like
Bolivia
, the US$25
million claimed by the transnational
company could mean 125,000 water
connections in
Cochabamba
, or 3,000 annual doctors' salaries
in rural areas, or 12,000 annual
teachers' salaries.”
Protest
against Cochabamba privatization in the
Netherlands : “Water is for the people,
not the multinationals”.
|
the case of
cochabamba
In 1999, the Bolivian government
privatized the city of Cochabamba 's
municipal water services and handed them
over to the Aguas del Tunari consortium,
which consisted of International Water
Limited (50% owned by Edison SpA from Italy
and Bechtel from the US ); the Spanish
company Abengoa (25%); and four Bolivian
investors.
Aguas del Tunari immediately raised the
price of drinking water by about 300
percent. In the meantime, the government
approved the privatization of all drinking
water services and water resources such as
rivers and lakes. The convergence of these
events triggered a mobilization of
communities
Farmers, rural workers,
environmentalists, students and other
social groups came together in the
Coordination for the Defense of Water and
Life and carried out daily actions such as
road blockades, demonstrations and strikes.
This culminated in April of 2000 with a
massive rally, which ended in several
deaths and numerous injuries.
Ultimately, the people of Cochabamba
were victorious in not only driving the
company out of the country, but also in
having the planned privatization law
withdrawn. The contract with Aguas del
Tunari was annulled, and water management
was given to a public cooperative.
unhappy water giant
Aguas del Tunari responded by launching
various actions in order to receive
compensation for so-called “incurred
losses”. In November 2001, the company
claimed US$25 million from the Bolivian
government to make up for the loss of
revenue incurred with the cancellation of
the contract. The case, which is pending,
will be heard by a tribunal with three
members: someone chosen by the World Bank
President, someone chosen by the
transnational corporation, and someone
chosen by the Bolivian government.
Cochabamba 's ‘war on water' provides
striking evidence of corporate power, but
above all it is an inspiring example of the
power held by people when they unite in
order to defend their basic rights.
more information:
read
about
the privatization and social unrest
background
on this
site
Water Justice:
www.waterjustice.org
Friends of the Earth Bolivia:
