"You cannot be serious man!" Some Bolivian comedy & politics. (edited with improved translation hopefully!) Many thanks Rinal

Before you read the article that was kindly left by the messengers (thank you); its important people are aware this site is well known for guff. This "website" proclaimed that Bolivia saved Guaracachi when it nationalised it as it was 'bankrupt.'...The first article is from 2011, but you get the idea even with the very poor translation via Google. 

You can scroll down to the next article...of course a court case hinders negotiations, afterall Rurelec were left with no alternative but to file for International Arbitration because Bolivia "kindly" did sweet nothing to compensate the company bar some 'lip' service in my opinion. 

Likewise, you'll note how many companies are hitting the International Arb route in the final article also highlights in bold. 

Guaracachi required $ 19.5 million after nationalization. This was 06th August 2011, alas the spin...(edited with improved translation hopefully!)

IN Nationalization 

Since August 06 2011 

PAGE SEVEN

Natali Vargas - for the Generator  continue to operate from  May 1 of 2010, it had to stop paying debts with YPFB  and obtain a credit of Corani and Valle Hermoso .

After the nationalization of the electricity company  Guaracachi SA (EGSA), it is required that you will inject $19.5 million to continue operating and generating electricity for the National Interconnected System  (SIN).

"At the time of  nationalization, the company had a debt of $130 million; then, for the company continue to operate, first Bolivia had to pay a debt to Yacimientos Petroliferos Fiscales Bolivianos (YPFB) for fuel, to the equivalent to $14.5 million; because if it was not paid, the company had to stop operating, the company had no cash availability or anything", described the  manager of the National Electricity Company   (ENDE), Nelson Knight.

The executive explained that, through this kind of loan from YPFB, the company could only continue to operate.

In addition, the subsidiaries Corani and Valle Hermoso  gave EGSA five million dollars to enable it to operate, since it "had no  way to pay and cover their obligations or to continue their operations".  In addition, the State - exceptionally - gave permission to EGSA (Guaracachi) to pre-sell carbon credits, with which gained $4.5 million .

ENDE took charge of  EGSA from May 1 of 2010, when in commemoration of the Day of the work the Government of  Evo Morales nationalized, in addition the electric generation companies Corani and Valle Hermoso.

On Tuesday, during the inauguration of the  IV Expoindustria, Morales announced that EGSA was bankrupt.

That position was clarified two days later by the minister of hydrocarbons and Energy, Jose Luis Gutierrez, who explained that "the President, as an example to the  investors not to make mistakes, he said that we made this company bankrupt".

Yesterday, in the locality Chuquisaquena de Camargo, the Head of State said that "many of the companies were in bankruptcy because of the irresponsibility of  the neo-liberal mandates" [Excessive Borrowing].

However, a report from  rating agency  risk Pacific Credit Ratings reveals that the liabilities and debts of EGSA have been growing since the year 2006, due to obligations that were acquired by the company to purchase the  Combined Cycle, which suffered a short circuit hours into its Goverment operation last year. Until March 2011, EGSA had a total financial debt of 633.9 million Bolivians, and a liability of  961.3 millions of Bolivians.

The decision was based on the fact that the project is delayed, which was more than two years, after that the turbines of this burned. 

The budgeted costs for the purchase of the combined cycle was $40 million, but the cost  in reality was $91 million.

Debts for the purchase of the equipment meant EGSA borrowed money from the CAF and had issued bonds.

Government did not speak of  bankruptcy in 2010

When the Government of  Evo Morales nationalized the three generators Guaracachi, Valle Hermoso  and Corani, and the electricity distributor Elfec, he did not mention that any of them were in  bankruptcy.

In his pep talk to nationalization, the May 1 2010, Morales said: "we have the obligation and the mandate of the  Bolivian people, in application of the Constitution  to recover  (the companies of the) bad call capitalization". Also, he said that "it is the obligation of the State , to investors recognize your investment".

The early morning of that day, military troops entered the facilities of the generation plants; however, the Agent pointed out that it was  "an effort to reach an agreement    with transnational corporations and there was a lack of willingness to agree through dialog is the State and its institutions ".

Days later, the Government reported that it had $50 million to compensate the three generators, despite the fact that the British Rurelec PCL felt that the price for the shares of 50% in EGSA was worth more than $65 million and more than $5.5 million   in dividends .

Data from the Regulatory Authority  and social control in electricity (AE) reveal that from 1995 to 2009 EGSA ran $92 million   and had committed $69.3 million   for 2010.

Combined Cycle - The company Guaracachi hindered its costs of borrowing  by 33.46 million Bolivians by investing in the Combined Cycle Project.

For yesterdays article read: Attorney claims that the solution hinders ICSID British company Guaracachi (Article 26th November 2013) (edited with improved translation hopefully!)

The High, Nov 26 (ABI) .- The International Center for Settlement of Investment Disputes (ICSID), which is dependent on the World Bank, it stifles a solution with the British company Guaracachi America Inc Rurelec, denounced Tuesday the State Attorney General, Hugo Montero.

This British company sued the Bolivian State, before the Arbitral Tribunal, for the payment of compensation to 142.3 million as a result of the nationalization of their assets in the Empresa Guaracachi SA (EGSA).

"To seek fair compensation in the friendly field we are in the process of rapprochement and with calls to the dialog meetings. In the Item Guaracachi, we have asked for the separation of the process, on the one hand the Hydrocarbons Law of 2004 and on the other hand, the nationalization', explained Montero to journalists.
However, alleged that 'once more the subject is handled by the ICSID', recalling that in 2007 Bolivia denounced the convention establishing and decided to withdraw from the agency of the World Bank.

'Without recognizing its jurisdiction the Attorney through his legal team is arguing and basing on that stage has no competition and that you should separate the two issues; the Hydrocarbons Law and the nationalization, since mixing cases is unsuitable for the development of the issue, obviously for the interests of the parties', he explained.

He complained that to control the case, the ICSID takes advantage of the situation, by mixing two different subjects, and drag the item with the nationalization of the Hydrocarbons Law of 2007.

Montero said the Attorney works in defence of the interests of the Bolivian State in at least 13 cases, by conflict relating to investments after the Bolivian Government took the sovereign determination to nationalize natural resources and the companies that were privatized in the past.

"This is dragging on with the item of nationalization to submission, consideration and competence of the forum of the ICSID, which is totally unacceptable, it is not logical, we know how it goes this center, we know this because we have denounced and these items are to be discussed and know the people, we are subject, obliged to go talk to a scenario to which we have denounced', he said.

According to the attorney, this is the cases Guaracachi America Inc Rurelec; Chaco; Quiborax and Non Metallic Minerals; De Albertis (Sabsa); El Mallku Khota; Sinchi Wayra should start; Caiguami; Emdigas S.A. M. ; Colquiri; Air BP; mains (REI) and Iberdrola, S.A. , in addition to Ocampo Cataldi, who was already completed.

It also established that 'Bolivia does not negotiate their interests, if you can find a understanding and agreement with the party who is suing for an amount of fair compensation and balanced, also documented and transparent and according to the interests of the Bolivian State'.