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Bolivia: Entel Nationalization |
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Monday, 03 March 2008 |
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The European Telecommunications Network Operators' Association (ETNO) has asked EU authorities get involved in the nationalization dispute between the government of Bolivia and Euro Telecom International (ETI), the majority owner of fixed line operator Entel.
ETNO wants Bolivia’s government to guarantee a legal framework for foreign investment in the country. ETI has turned to international arbitration at the World Bank's International Centre for Settlement of Investment Disputes (ICSID) over Bolivia’s plan to take possession of ETI's stake in Entel, acquired in 1996 for US$ 610 million. The Bolivian government already owns 47% of Entel.
In December 2007, the Bolivian government started negotiating with the ICSID to reject the plea for arbitration filed by ETI in October. In May 2006, Bolivia's government decided not to recognize the ICSID as a valid organization because President Evo Morales' administration believes the ICSID always sides with multinational corporations. Source: Business News Americas and El Diario - WDR/Intelecon Regulatory News.
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