UK’s Rurelec receives compensation from Bolivian government

The government of Bolivia has finally compensated Rurelec four years after nationalizing the 50 per cent stake that the British firm held in Guaracachi, an electric power utility.

As part of the settlement reached in the Permanent Court of Arbitration in The Hague, Bolivia transferred $31.5m to Rurelec, which represents three-quarters of the $42m compensation ordered by the court in February, reports BNamericas.

Peter Earl, Rurelec’s executive chairman, acknowledged Bolivia’s right to nationalize its assets, but cast serious doubt about any future investments by his company in the Andean country.

During Evo Morales’ presidency, which started in 2006, Rurelec has installed 170 MW of new capacity in the country.

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