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Open letter to the WB, IADB and the German Cooperation GTZ

Cochabamba, March 6, 2005

Inter-american Development Bank
World Bank
German Cooperation GTZ
Present. -

RE: DO NOT CAUSE MORE CONFLICT AND CRISIS IN BOLIVIA

In light of the recent events in Bolivia, we want to request that your institution not be responsible for causing greater conflict and crisis in Bolivia. We make this request with the hope that there is still time to solve some of the main problems that at the moment our country is experiencing.

Following the conflicts in El Alto calling for the departure of Aguas del Illimani and the formation of the new company that will replace it, last week negotiations between the government and the FEJUVE alteña were carried out, reaching after long debates to some agreements; however the government of our country requested in diverse occasions a pause to be able to consult with your institutions. The answer given by your institutions to this consultation was negative, rejecting the agreements that the government until then had achieved and discarding the whole advance in the negotiations. This pressure on the part of the international organisms WB, IDB, GTZ is taking our country to a crisis and total uncertainty.

Therefore we wish to submit for your serious consideration the following :

1) Allow the preventive intervention of Aguas del Illimani. The intervention is established in Art. 38 of law 2066 regarding potable water and sanitary sewer systems and it is applied when the company puts at "risk the normal provision of the services by nonfulfilment of the expansion goals, quality or efficiency"; This is the situation that is the case at the moment in El Alto where the main reason for the conflict is 200.000 people that during almost 7 years have not had water service because of the nonfulfilment of the expansion goals.

2) Allow the formation of a social public company and don't insist in the formation of a public private partnership (SAM in Spanish). It is not only the municipal government's duty to promote the participation of non-profit making entities in the delivery of public services (art . 8 numeral I parenthesis 4 of the law 2028 of municipalities); but also the experience with Aguas del Illimani and Suez has demonstrated that private capital in spite of the fixed profit of 13% has not been able to fulfill its expansion and quality goals. The population of El Alto and Bolivia demand an active participation in the administration and control of public and social services.

We are sure that if your institutions would cease the pressure upon the government in these respects the conflict in El Alto would find a solution, therefore alleviating the tensions that are taking our country to a crisis situation.

Sincerely,

COALITION FOR THE DEFENSE OF THE WATER AND LIFE
COCHABAMBA, BOLIVIA

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