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Andean Group - September 2011 (ISSN 1741-4466)
BOLIVIA: Morales lacks the necessary spark
Having faced major criticism over its hydrocarbons policy following the failed attempt at ending fuel subsidies (el gasolinazo) late last year [RA-11-01], the government of President Evo Morales has once again been forced to admit mistakes in relation to the energy sector, this time with regard to electricity. Technical problems and maintenance issues afflicting two of the main generating companies, Guaracachi and Valle Hermoso (both state-run), which left six of the country’s nine regions facing blackouts last month, have exposed the lack of investment in infrastructure, triggered concern from the private sector and raised familiar questions over the government’s handling of the nationalisation process.
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