Pressured by citywide strikes over water services in El Alto, the Bolivian government aims to cancel the private water contract with Aguas del Illimani, water concessionaire for El Alto and capital La Paz. This offer has been rejected by citizen groups as they see no firm date nor guarantee for the company's departure. Illimani, controlled by French water company Lyonnaise de Eaux, and Bolivia's only water company under private-sector control, serves more than 230,000 residents under a 30-year water and sewerage concession in El Alto and neighboring La Paz. Illimani says it has complied with contract guidelines. The Utility wants to meet with the basic services ministry to determine how it can guarantee service in these areas. According to the original concession guidelines, Bolivia will have to pay Illimani the net value of its fixed assets upon contract cancellation. French water company Suez holds a 55.5% controlling share in Illimani, which served more than 230,000 residents in cities La Paz and El Alto.

Related news: Bolivia, El Alto: new water revolt underway to oust Suez, Source Weekly, 29 Dec 2004

Source: BNamericas.com (subscription site), 12 Jan 2005; BNamericas.com (subscription site), 17 Jan 2005; The Democracy Center, Blog from Bolivia, 11 Jan 2005

Tags: financing