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Weekly Report - 26 April 2007

BOLIVIA : Tarija conflict takes gloss off gas celebrations

President Evo Morales has signed into law the contracts with 12 foreign energy companies. Due to a mixture of official incompetence and opposition determination, which led to months of debate in congress, their approval was only achieved on 19 April. Morales plans to celebrate this on the first anniversary of his "nationalisation" of the hydrocarbons sector on 1 May. "The fighting has not been in vain," he said. It was an unfortunate choice of expression. One person died in violent clashes in the department of Tarija last week in a provincial dispute for control over one of Bolivia's biggest gas fields, raising serious questions about the country's ability to increase gas supplies to Argentina and Brazil in the medium term.

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