LA PAZ – Spain’s Iberdrola is putting the finishing touches on a compensation agreement with Bolivia that calls for the Andean nation to pay the multinational electric utility $34.2 million for the expropriation of its stakes in four power companies in 2012.
The deal being hammered out with Bolivia’s Hydrocarbons and Energy Ministry and state-owned power company ENDE could be signed on Monday in the central city of Cochabamba and the compensation paid before Friday, thus marking the utility’s definitive exit from Bolivia, market sources told EFE.
The deal would also bring an end to international arbitration proceedings that were launched in July 2014 and led to the signing of an agreement in principle that was never finalized.
The dispute dates back to December 2012, when the Bolivian government nationalized four power distribution companies – Electropaz, Elfeo, Cadeb and Edeser – majority owned by an Iberdrola subsidiary.
The Spanish multinational held indirect stakes in those companies through Iberbolivia, in which it holds a 63.4 percent stake.
Those four companies distributed electricity to more than a half million supply points in the provinces of La Paz and Oruro, nearly all of them in urban areas.