* President Evo Morales cites lack of investment in Bolivia
* Move may raise concerns among foreign investors
* Takeover hits as neighboring Argentina nationalizes YPF
* Spanish companies in crosshairs of some Latin American
states
By Carlos Quiroga
LA PAZ, May 1 (Reuters) – Bolivia is nationalizing the local
unit of Spain’s Red Electrica, President Evo Morales
said on Tu esday, ratcheting up tension between Spain and South
American governments eager to assert control over their energy
resources.
Argentina last month unveiled a plan to take control of the
country’s No. 1 oil company, YPF, from majority
shareholder Repsol, based in Madrid. Bolivia has already
nationalized wide swaths of its oil and gas sector.
Morales, Bolivia’s leftist leader, said the expropriation of
the Red Electrica unit, a power transmission company known as
TDE, stems from the company’s lack of investment in Bolivia.
Argentina used a similar justification for its takeover of YPF.
Spain, which vowed to halt imports of Argentine biodiesel
after the seizure of YPF, was still evaluating Tuesday’s
announcement by Bolivia. TDE administers 1,900 kilometers of
power lines in Bolivia.
“This, and the Argentine nationalization of 51 percent of
YPF, are developments that concern foreign investors, and
domestic investors as well,” said Alberto Ramos, who analyzes
Latin America for Goldman Sachs.
“But fortunately this type of event is circumscribed to a
small set of countries in the region that are pursuing heterodox
economic experiments and that are increasingly less integrated
into the global economy,” Ramos added.
Red Electrica officials were not immediately available for
comment, but a Spanish government source in Madrid said
authorities were in touch with La Paz to discuss technical and
diplomatic aspects of the nationalization.
“In honor of all Bolivian people who have struggled to
recuperate our natural resources and basic services, we are
nationalizing Transportadora de Electricidad (TDE),” Morales
said during an address marking Workers Day.
“We do this in the name of the Bolivian people and for the
benefit of the Bolivian people,” he said, adding that he had
ordered the army to take over TDE installations.
Red Electrica indirectly holds 99.9 percent of
Cochabamba-based TDE. The unit reported net profits of 12.5
million euros last year, or less than 3 percent of Red
Electrica’s 2011 net profits.
In 2006, Morales used the May 1 holiday to announce the
takeover of petroleum companies operating in Bolivia. He later
nationalized oil and gas reserves to redistribute wealth to the
landlocked country’s indigenous majority.
Morales, Venezuelan President Hugo Chavez and Ecuador’s
President Rafael Correa are leading a push in the region for
governments to reclaim control over natural resources.
South America is a major supplier of commodities,
particularly for the emerging economies of Asia.
Argentina, one of the world’s top grains exporters, is
expected on Thursday or Friday to get final legislative approval
for the bill allowing the government to take control of YPF.
