Bolivia has agreed to pay $31.5 million to British electric utility Rurelec as compensation for the 2010 nationalization of its controlling stake in power producer Empresa Electrica Guaracachi, $10 million less than the amount determined by an arbitration tribunal, the Attorney General’s Office said.
Attorney General Hector Arce said Friday at a press conference that the agreement was reached three days earlier at the conclusion of negotiations that followed a Jan. 31 arbitration award handed down by the Permanent Court of Arbitration in The Hague, which set the compensation at $41.8 million.
London-based Rurelec, however, agreed to waive more than $10.2 million of that total, including $5.7 million in declared but unpaid dividends.
Bolivia’s leftist president, Evo Morales, expropriated Rurelec’s 50.01 percent stake in Guaracachi, Bolivia’s largest power generation company, on May 1, 2010.
Guaracachi, whose installed electricity capacity in Bolivia rose from 369 MW in 2009 to 454 MW in 2014, accounts for 33 percent of the Andean nation’s power generating capacity.