Bolivia's government has asked the World Bank's International Center for Settlement of Investment Disputes (ICSID) to reject a plea for arbitration filed by Telecom Italia subsidiary Euro Telecom International, regional news portal Terra reported.
In May 2007 Bolivia declared that it did not recognize ICSID as a valid organization and in a mission to New York last week Bolivia's government coordination vice minister Héctor Arce argued that Bolivia can no longer be included in the ICSID system, which disqualifies the agency as a competent body for taking this case.
The government rejected ICSID because it believes the agency always takes the side of transnational companies. ICSID's mission is to serve as the arbitrator when conflict arises between governments and private investors.
Arce is visiting the ICSID offices in New York as leader of a delegation made up of foreign office staff and members of the chief of staff's office.
Telecom Italia is resorting to international arbitration because of the Bolivian government's plan to take possession of Euro Telecom's 50% stake in local telephony operator Entel, acquired in 1996 for US$610mn. The Bolivian government already owns 47% of the telco.
Posted to the site on 30th October 2007
Posted to: www.cellular-news.com/story/27057.php