[Marxism] Bolivia prepares to nationalize power firms, railways

[Fred Fuentes <fred.fuentes@xxxxxxxxx>]

Bolivia prepares to nationalize power firms
Tue Feb 10, 2009 12:35am GMT

LA PAZ, Feb 9 (Reuters) - Bolivia is gearing up to nationalize
foreign-owned electric power companies, which would allow leftist
President Evo Morales to increase state control of the economy, the
government said on Monday.

Morales has previously said that he would like to return to state
ownership a number of power companies privatized in the 1990s, as well
as several railway operators.

Morales' new Energy Minister Oscar Coca told reporters on Monday that
he will study an existing power company nationalization plan in order
to make an announcement before the end of the week.

"The government fully intends to regain control of (power) generation
as well as transmission on behalf of the Bolivian people," said
outgoing Energy Minister Saul Avalos in a joint press conference with
Coca.

Morales named Coca, a former Public Works minister, on Sunday to
replace Avalos in a cabinet shake-up announced a day after a new
constitution came into force.

Foreign companies control power generation and part of the
transmission grid in the impoverished Andean country since the mid
1990s, when Bolivia privatized energy, telecommunications and utility
companies.

The biggest power companies in Bolivia are Corani, in which Ecoenergy
International -- a subsidiary of France's GDF Suez (GDFZY.PK: Quote,
Profile, Research) (GSZ.PA: Quote, Profile, Research) -- has a 50
percent stake; and Guaracachi, in which British company Rurelec PLC
(RUR.L: Quote, Profile, Research) has a 50 percent interest.

The largest transmission company in Bolivia is Transportadora de
Electricidad, owned by Spain's Red Electrica de Espana (REE.MC: Quote,
Profile, Research).

In an effort to increase state revenues from the country's abundant
natural resources Morales has already nationalized natural gas and
mining companies as well as the country's largest telecommunications
company.

He has pledged to build cement, paper and sugar firms and has created
a state airline that is expected to start operations shortly.
(Reporting by Eduardo Garcia; Editing by Fiona Ortiz; Richard Chang)

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