Bolivia Flashcards
Why was water privatised in Bolivia?
- Government was in charge of distribution of water
- was not effective in La Paz
- World Bank issued a $25bn loan on condition that water supply was privatised
- intended to attract TNCs + FDI
Who was the private supplier of water in La Paz?
SUEZ (French company)
What advantages came with privatisation of water in La Paz?
- Efficient and widespread coverage (50% more people received water than in public ownership)
- more investment in construction of water infrastructure
What disadvantages were there with privatisation of water in La Paz?
- average connection cost was $450/month
- average wage was $17/month
- only 20% of people could afford a connection
- usage of supply was not regulated, wastage was high
- 200,000 outpriced from having a water supply
- water supply was intermittent
- water quality was questionable at times (murky)
When was the private contract for water in La Paz cancelled?
- 2006
Who was the private company providing water in Cochabamba?
Bechtel (American TNC)
- operated as a monopoly over the area
What happened in Cochabamba after privatisation?
- Bechtel restarted a project to transfer water from Bolivian mountains
- needed to recover costs so increased prices rapidly
- resulted in 4 days of riots
- 170 injured
- 17 year old shot dead
When was the private contract for water in Cochabamba cancelled?
2000
How many houses have water connection in Cochabamba now?
- official supply from public sector:
- 45% of houses
- only available for 2 hours a day, 3 days a week
How has access to piped water in urban areas varied since nationalisation in Bolivia?
- 88% in 2001 (just after nationalisation)
- 85% in 2005
- back up to 88% in 2010
How is water supplied in Cochabamba now?
- 45% of houses covered by public sector
- rest covered by cooperative of 300 informal businesses
- fills gaps left by patchy public service