According to the Bolivian Constitution, all basic services have to be guaranteed by the state, who also has to ensure that they are universally distributed and watch over their quality. However, in 1997 the de Lozada's government started a privatization process across all sectors in the country, including water utilities. Water service and sanitation in La Paz and El Alto were handed over to the company Aguas del Illimani S.A., a subsidiary of Suez-Lyonnese des Eaux, with grants from the World Bank. In 1997, in fact, the the World Bank declared that it would stop providing Bolivia with international development grants unless the government of Bolivia privatized the water supply of La Paz and El Alto. Consequently, Alteños have found themselves fiscally constrained by the new contract that controls their water distribution. |
In 2005, the mobilization of the inhabitants from La Paz and from El Alto, raising against the privatization of water, kicked out Suez French multinational from the country
| Name | Privatisation of water in La Paz, Suez-Aguas del Illimani, Bolivia |
| Country | Bolivia |
| Province | La Paz |
| Site | La Paz and El Alto |
| Accuracy of Location | HIGH local level |
| Type of Conflict (1st level) | Water Management |
| Type of Conflict (2nd level) | Water access rights and entitlements Water treatment and access to sanitation (access to sewage) |
| Specific Commodities | Water |
| Project Details | U$52 million investment, derived from soft loans, that means, loans with low interest awarded by the International Cooperation to support through private companies to poor countries. BM U$40 million through the IFC; BID U$15 million and U$10 million from CAF. Increased connection fees 25%. The rates increased from U.S. $ 335-445 for water and sewer. |
| Level of Investment (in USD) | 50,000,000 from several sources |
| Type of Population | Urban |
| Potential Affected Population | 200,000 |
| Start Date | 2005 |
| Company Names or State Enterprises | Suez-Lyonnaise des Eaux from France Aguas del Illimani (AISA) from Bolivia |
| Relevant government actors | SAMAPA (Servicio Autonomo Municipal de Agua Potable y Alcantarillado) - Bolivia, Municipality of El Alto - Bolivia, Municipality of La Paz - Bolivia, Ministery of Water, |
| International and Financial Institutions | Corporación Andina de Fomento (CAF) from Venezuela Inter-American Development Bank (IADB) The World Bank (WB) from United States of America - El Servicio Municipal de Agua Potable y Alcantarillado de La Paz (SAMAPA) recibió $US 490,000 del Banco Mundial, con el propósito de mejorar la capacidad institucional de la empresa, y transferir al sector privado una empresa saneada y eficiente |
| Environmental justice organisations and other supporters | Federación de Juntas Vecinales (FEJUVE) - Bolivia, FEDECOR - Bolivia, Committee for the Defence of Water and Life (Cochabamba) - Bolivia, Coordinadora del Agua, Trabajadores Central Obrera Regional de El Alto |
| Intensity of Conflict (at highest level) | HIGH (widespread, mass mobilization, violence, arrests, etc...) |
| When did the mobilization begin | In REACTION to the implementation (during construction or operation) |
| Groups Mobilizing | Farmers Indigenous groups or traditional communities Local ejos Neighbours/citizens/communities Social movements Trade unions Local scientists/professionals |
| Forms of Mobilization | Blockades Official complaint letters and petitions Street protest/marches Strikes Occupation of buildings/public spaces |
| Environmental Impacts | Potential: Groundwater pollution or depletion |
| Health Impacts | Potential: Malnutrition, Mental problems including stress, depression and suicide, Infectious diseases, Other Health impacts |
| Socio-economic Impacts | Visible: Increase in Corruption/Co-optation of different actors, Increase in violence and crime, Lack of work security, labour absenteeism, firings, unemployment, Loss of livelihood, Loss of traditional knowledge/practices/cultures Potential: Militarization and increased police presence |
| Project Status | Stopped |
| Pathways for conflict outcome / response | New legislation |
| Development of Alternatives | The local population wants to stop the water privatization Remunicipalization of water services and sanitation |
| Do you consider this as a success? | Not Sure |
| Why? Explain briefly. | Despite the withdrawal of the privatization plan, as a result of Suez-Aguas del Illimani leaving the country, the Bolivian State has to pay total compensation of US$15.1 million dollars: US$9.6 million to repay loans from the Inter-American Development Bank and the Andean Development Corporation (CAF), plus US$5.5 million to repay Bolivian Aguas de Illimani shareholders. And the security of water supply has not been achieved yet. |
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| Contributor | Lucie Greyl, Joan Martinez Alier, Daniela Del Bene |
| Last update | 30/12/2015 |