President Evo Morales of Bolivia is struggling to take control of the nation's vast mineral wealth for the benefit of the people., a photo by Pan-African News Wire File Photos on Flickr.
Bolivia nationalizes Spanish power company
Wed May 2, 2012 2:35AM GMT
Bolivian President Evo Morales has nationalized a Spanish power company and ordered its seizure.
On Tuesday, Morales issued the order nationalizing Transportadora de Electricidad SA (TDE), which is a subsidiary of the Spanish group Red Electrica Corporacion, AFP reported.
Bolivia will now take control of 99.94 percent of the company.
The company, which was privatized under the former Bolivian government of Gonzalo Sanchez de Lozada, has claimed that it owns and runs almost 75 percent of the electric power lines across Bolivia.
Spanish companies have been having a tough time in South America lately.
On April 16, Argentine President Cristina Fernandez announced the decision to expropriate the Spanish oil giant Repsol’s subsidiary, YPF, which was formerly a state-owned Argentine oil company.
She said that Argentina had to take back the oil company since it is the only nation in Latin America "that does not manage its natural resources."
Spanish officials said they were still collecting information about Bolivia's latest action, noting that it is a different situation from what has happened in Argentina.