Water privatization in Bolivia
Encyclopedia
The privatization of water supply and sanitation in Bolivia
took place during the second mandate of Bolivian President Hugo Banzer
(1997-2001) in the form of two major private concessions: One in La Paz
/El Alto
to Aguas de Illimani
S.A. (AISA), a subsidiary of the French Suez (formerly Lyonnaise des Eaux) in 1997; and a second one in Cochabamba
to Aguas de Tunari, a subsidiary of the multinationals Biwater
and Bechtel
in 1999.
and the International Development Bank highlighted water privatization as a requirement for the Bolivian government in order to retain ongoing state loans
.
Following two popular uprisings against water privatization, the first in Cochabamba
in April 2000 and the second in La Paz
/El Alto
in January 2005, the two concessions were terminated. In the latter case, Aguas de Illimani was replaced by the public utility Empresa Pública Social de Agua y Saneamiento (EPSAS).
The public water utility came under severe criticism in 2008 due to water shortages, accounting errors, tariff increases and poor disaster preparedness. Consequently, representatives of the La Paz neighborhood association announced to create their own service provider.
Water supply and sanitation in Bolivia
Bolivia’s water and sanitation coverage has greatly improved since 1990 due to a considerable increase in sectoral investment. However, the country continues to suffer from what happens to be the continent’s lowest coverage levels as well as from low quality of services...
took place during the second mandate of Bolivian President Hugo Banzer
Hugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...
(1997-2001) in the form of two major private concessions: One in La Paz
La Paz
Nuestra Señora de La Paz is the administrative capital of Bolivia, as well as the departmental capital of the La Paz Department, and the second largest city in the country after Santa Cruz de la Sierra...
/El Alto
El Alto
At one time merely a suburb of adjacent La Paz, Bolivia, on the Altiplano highlands, the city of El Alto is today one of Bolivia's largest and fastest-growing urban centers. As of the 2001 census, the population was 649,958. In 2010, the population may be nearly 900,000, or more. The city contains...
to Aguas de Illimani
Illimani
Illimani is the highest mountain in the Cordillera Real of western Bolivia. It lies just south of La Paz at the eastern edge of the Altiplano. It is the second highest peak in Bolivia, after Nevado Sajama, and the eighteenth highest peak in South America...
S.A. (AISA), a subsidiary of the French Suez (formerly Lyonnaise des Eaux) in 1997; and a second one in Cochabamba
Cochabamba
Cochabamba is a city in central Bolivia, located in a valley bearing the same name in the Andes mountain range. It is the capital of the Cochabamba Department and is the fourth largest city in Bolivia with an urban population of 608,276 and a metropolitan population of more than 1,000,000 people...
to Aguas de Tunari, a subsidiary of the multinationals Biwater
Biwater
Biwater Plc is a former British water company. It designed and built Water Treatment Works and Waste Water Treatment Works, mainly in the UK but also around the world...
and Bechtel
Bechtel
Bechtel Corporation is the largest engineering company in the United States, ranking as the 5th-largest privately owned company in the U.S...
in 1999.
Background
The World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and the International Development Bank highlighted water privatization as a requirement for the Bolivian government in order to retain ongoing state loans
Impact
It is argued that the privatization process did little with regards to addressing access to water and that the increase in water prices following such measures was met by an approximate 2% increase in levels of povertyPoverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
.
Following two popular uprisings against water privatization, the first in Cochabamba
Cochabamba
Cochabamba is a city in central Bolivia, located in a valley bearing the same name in the Andes mountain range. It is the capital of the Cochabamba Department and is the fourth largest city in Bolivia with an urban population of 608,276 and a metropolitan population of more than 1,000,000 people...
in April 2000 and the second in La Paz
La Paz
Nuestra Señora de La Paz is the administrative capital of Bolivia, as well as the departmental capital of the La Paz Department, and the second largest city in the country after Santa Cruz de la Sierra...
/El Alto
El Alto
At one time merely a suburb of adjacent La Paz, Bolivia, on the Altiplano highlands, the city of El Alto is today one of Bolivia's largest and fastest-growing urban centers. As of the 2001 census, the population was 649,958. In 2010, the population may be nearly 900,000, or more. The city contains...
in January 2005, the two concessions were terminated. In the latter case, Aguas de Illimani was replaced by the public utility Empresa Pública Social de Agua y Saneamiento (EPSAS).
The public water utility came under severe criticism in 2008 due to water shortages, accounting errors, tariff increases and poor disaster preparedness. Consequently, representatives of the La Paz neighborhood association announced to create their own service provider.
See also
- Water privatizationWater privatizationWater privatization is a short-hand for private sector participation in the provision of water services and sanitation, although sometimes it refers to privatization and sale of water resources themselves . As water services are seen as such a key public service, water privatization is often...
- Water supply and sanitation in BoliviaWater supply and sanitation in BoliviaBolivia’s water and sanitation coverage has greatly improved since 1990 due to a considerable increase in sectoral investment. However, the country continues to suffer from what happens to be the continent’s lowest coverage levels as well as from low quality of services...
- Cochabamba protests of 2000