Latin American Solidarity Network (LASNET)

After 6 months of struggle and protest in the so-called “Water War” in Cochabamba, Bolivia the people successfully expelled the company Aguas del Tunari (joint venture with U.S. company, Bechtel). Nevertheless, in October of 2000, only a few months after this victory, the government of Ecuador opened the bidding process to sell the public water company of Guayaquil, la Empresa Cantonal de Agua Potable y Alcantarillado de Guayaquil (ECAPAG). The Inter-American Development Bank (IDB) was supporting this process from the beginning and finally the concession was granted to Interagua (another Bechtel joint venture).

Yes, history repeats itself. A quick review of the press in Guayaquil shows us the constant complaints by citizens in neighborhoods in Guayaquil including the rising cost of water, cut-offs of the public schools for non-payment, contamination of drinking water, improper charges for meter installation, and jobs lost by hundreds of workers since the privatization began.

But, what options are left to the people of Guayaquil in the face of this? Bechtel’s broken contract in Bolivia cost the population a $25 million dollar lawsuit by Bechtel for lost potential profits brought to the World Bank’s secret arbitration court, ICSID. The lawsuit is currently being negotiated by both parties to seek an out-of-court settlement.

Bechtel has learned the lessons of Cochabamba. MIGA (Multilateral Investment Guarantee Agency) another World Bank agency, has granted Interagua an $18 million guarantee for 15 years for the concession in Guayaquil. This guarantee gives the company protection against war and civil disturbances, especially those that might take place as a result of their own operations.

Regardless of whether we are from Cochabamba, Guayaquil, from Latin America, or from anywhere in the world…Don’t you think we should do something to stop these corporations that are not only taking control of our water, but also taking control of the politics and democracies of our countries?

– Marcela Olivera, Commitee for Water and Life, Cochabamba, Bolivia

Take action