Bolivia nationalises key firms
May 6, 2008 Bolivia nationalises key firms. Al Jazeera. 5/01/2008.
The Bolivian president has nationalised the country's leading telecommunications company and announced plans to return four foreign-owned gas companies to state control.
Gas production company Chaco, pipeline company Transredes and German-Peruvian owned distribution company CLBH will also all be returned to state control.
Bolivia, the poorest country in South America, is a major supplier of natural gas to neighbouring Argentina and Brazil.
May 6, 2008 Bolivia nationalises key firms. Al Jazeera. 5/01/2008.
The Bolivian president has nationalised the country's leading telecommunications company and announced plans to return four foreign-owned gas companies to state control.
Evo
Morales declared plans to buy back a majority of Entel last year, but
negotiations with parent company Telecom Italia delayed the move.
Morales,
who had accused the company of failing to meet commitments to expand
phone network coverage, said employees would keep their jobs.
The Bolivian leader
signed the deal at a ceremony in the capital La Paz, while riot police
stood guard outside the headquarters of Entel in the city.
The announcement came as
many countries across Latin America celebrated International Workers'
Day, marked by union marches in support of labour movements.
The date also marks the
first anniversary of Morales announcing new contracts that turned
foreign energy firms into service providers for Bolivian state energy
company YPFB.
"Today, May 1, 2008, we are consolidating the energy nationalisation," he said at a public ceremony.
"The Bolivian state has 50 per cent plus one share of the capitalist, or so-called capitalist, companies."
Referendum due
The president also signed
an agreement to purchase a majority share in the gas production company
Andina from its Spanish company, Repsol YPF.
Gas production company Chaco, pipeline company Transredes and German-Peruvian owned distribution company CLBH will also all be returned to state control.
Morales is a close ally
of Hugo Chavez, the Venezuelan leader, who has also increased state
control of companies in Venezuela and pledged to invest in
Bolivia's energy sector.
Bolivia, the poorest country in South America, is a major supplier of natural gas to neighbouring Argentina and Brazil.
Morales's reforms have been criticised by some more hardline Bolivians.
His government's proposed
rewriting of the constitution to increase indigenous peoples' rights,
state control of the economy and land reform have been criticised in
particular.
On Sunday voters in the country's Santa Cruz region are to vote in a referendum demanding autonomy from the central government.