Expatica countries
Index Last Var.(%)
BEL 20 3083.51 0.32
DAX 9605.08 0.17
IBEX 30 10058.5 -1.04
CAC 40 4387.61 -0.20
FTSE 100 6806.86 -0.05
AEX 397.5 -0.20
DJIA 16272.65 0.46
Nasdaq 4318.933 0.63
FTSE MIB 20298.33 -0.11
TSX Composite 14214.35 0.18
ASX 5415.4 -0.10
Hang seng 22836.96 0.04
Straits Times 3110.78 0.45
ISEQ 20 836.3 0.23
EUR / USD 1.37976 0.67
EUR / GBP 0.82571 0.59
USD / GBP 0.598544 -0.10
Gold 1329.6 -0.13
Oil 108.9 -0.76
Silver 21.28 0.08
You are here: Home News Spanish News Iberdrola hopes for 'fair' price after Bolivia...
Enlarge font Decrease font Text size

30/12/2012Iberdrola hopes for 'fair' price after Bolivia nationalisation

Spanish energy group Iberdrola said Saturday it hopes Bolivia will pay "a fair price" for four electrical utilities nationalised by La Paz earlier in the day.

"We hope we will get the real value of our share" in the expropriated companies, an Iberdrola spokesman told AFP.

He did not say how much the Spanish company expected to be paid or whether an estimate had already been made.

Quoting market sources the Spanish press estimated Iberdrola's share in the nationalised electrical utilities in Bolivia at 100 million dollars.

Bolivian President Evo Morales announced earlier Saturday a decree targeting Iberdrola-owned utilities in the cities of La Paz and Oruro. They are called Electropaz and Elfeo respectively.

In La Paz, soldiers later took control of power plants that until now were run by Iberdrola, while police seized corporate offices.

It was the latest in a series of such seizures by the outspoken leftist who is a key member of a group of populist South American presidents led by the now-ailing Hugo Chavez of Venezuela.

In May, Morales nationalised a subsidiary of another Spanish power group, Red Electrica Corporacion, which distributed electricity.

This time, Morales said he was acting because Iberdrola charged more for electricity in rural areas than it did in cities, and service was also uneven.

"We are forced to take this measure so that utility rates will be uniform" and service will be of the same quality in the country as in urban areas, the president said at a ceremony at the presidential palace.

He said Iberdrola would be compensated after an evaluation of its seized assets. This will be done by a private Bolivian company and can take up to six months.

Iberdrola owns 63.4 percent of Iberbolivia de Inversiones, which holds 89.5 percent of Electropaz and 92.8 percent of Elfeo, according to stock market data.

"To date we have not received the text of the nationalisation decree," signed by Morales, said the Iberdrola spokesman, but added that the company expected to get the paper soon.

© 2012 AFP

0 reactions to this article

0 reactions to this article

Discussion Forums

English in Spain

Any other British Mums in Madrid?

Travel & Transport in Spain

Quality Real And Fake Passports,Driver’s License,ID Cards,

Community Noticeboard Spain

Quality Real And Fake Passports,Driver’s License,ID Cards,

English in Spain

Buy fake passports,driver's licenses,identity cards, visas

Business and Personal Finance in Spain

End of Week Currency Roundup

participate in the forums

Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.