[Peace-discuss] Fwd: BECHTEL VS. BOLIVIA - HOW YOU CAN HELP

[Margaret E. Kosal]

One of two pieces/actions which seem especially timely in light of Veronica 
Kann's presentation at this past Sunday's AWARE meeting and the effects of 
neo-liberalism south of the US border.

Namaste,
Margaret

>August 19, 2002
>Cochabamba, Bolivia
>
>Dear Friends and Readers:
>
>As most of you well know, The Democracy Center has devoted a good deal of
>our recent work to blocking the Bechtel Corporation in its ongoing efforts
>against the people of Bolivia.  Today we are asking you to do something
>simple (and free) that can help.
>
>It was Bechtel that, in early 2000, took over the public water system here
>in Cochabamba, raising rates far beyond what poor families could afford and
>setting off a citywide revolt.  Only after one 17 year old boy was left
>dead and hundreds of other people left injured, did Bechtel finally leave,
>returning the water system to public hands.  Last November Bechtel
>initiated legal action against Bolivia in a secret trade court controlled
>by the World Bank.  The $14 billion a year company now wants $25 million
>more from Bolivia, a portion of the profits the corporation hoped to gain
>here but wasn't allowed to.
>
>To be clear, this fight is not just about Bolivia.  The World Bank's secret
>court is the model for how all trade disputes would be settled under the
>proposed Free Trade Act of the Americas (FTAA).  What Bechtel is doing to
>Bolivia is what all corporations would be able to do to local, state and
>national governments across an entire hemisphere - challenging , behind
>closed doors, the laws that protect us as consumers and workers and which
>defend our environment.  Fighting this case helps put the spotlight on
>these plans and helps wage the larger battle as well.
>
>The Democracy Center, along with a wide coalition of groups across Bolivia,
>the U.S., and the rest of the world, is organizing a campaign to stop
>Bechtel in its tracks.  Step one is filing a formal demand with the World
>Bank that it open up its secret trade court to public scrutiny and
>participation.  Below is the letter we will be sending to the World Bank
>late next week.  It speaks for itself and I hope you will read it.  What we
>need from you at this point is nothing more than support - your name to add
>to the letter.
>
>Please note, that the letter is ONLY FROM ORGANIZATIONS, not individuals.
>So, if you represent an organization (an environmental group, a union, a
>nonprofit organization, etc.) please consider endorsing this letter by
>replying to this note with the following information (NO LATER THAN NEXT
>MONDAY, AUGUST 26TH):
>
>
>Name
>Title
>Organization
>Country
>
>If you are interested in more background on this issue and on our efforts,
>please visit The Democracy Center Web site (http://www.democracyctr.org)
>and click on the Bechtel vs. Bolivia link.
>
>Thank you for your support and we'll keep you posted on what happens next!
>
>Jim Shultz
>The Democracy Center
>
>
>-----------------------------------------------------
>THE LETTER TO THE WORLD BANK
>
>
>James D. Wolfensohn, President, World Bank
>Ko-Yung Tung, Secretary-General, ICSID
>David D. Caron, tribunal president
>Henri C. Alvarez, tribunal member
>José Luis Alberro-Semerena, tribunal member
>ICSID Dispute Resolution Panel
>c/o International Centre for the Resolution of Investment Disputes
>World Bank
>1818 H Street, NW
>Washington, DC 20433
>
>RE: Demand for public participation
>     Aguas del Tunari S.A. (Bechtel) v. Republic of Bolivia (Case No.
>ARB/02/3)
>
>Dear Sirs:
>
>The signers of this letter represent more than [# to be added] civil
>society organizations and public leaders across five continents.  We are
>writing to you out of our shared commitment to the right of people to
>participate in the public matters that affect their communities and
>nations.  With this letter we respectfully request that you guarantee
>public participation in the arbitration between Aguas del Tunari/Bechtel
>Enterprises and the Republic of Bolivia, a case that directly implicates
>one of the most fundamental human needs - access to water.  This case is
>the most visible and important cases that has come before a World
>Bank/ICSID tribunal - Aguas del Tunari/Bechtel Enterprises vs. Bolivia.
>
>BACKGROUND
>
>The history of this case is well-known worldwide.  Under direct pressure
>from the World Bank, the Bolivian government put up for private lease the
>water system of its third largest city, Cochabamba.  In 1999, following a
>process with just one bidder, a 40 year concession was granted to Aguas del
>Tunari, a majority-owned subsidiary of Bechtel Enterprises of California
>set up for that sole purpose.  Within weeks of taking over control of the
>water system, the company raised water rates by an average of more than 50%
>and in some cases far higher.  Families living on a minimum wage of $60 per
>month (and often less) were ordered by the company to pay as much as 25% of
>their income just to maintain their water service.
>
>The people of Cochabamba, unable to pay the bills presented them by the
>company and unable to get any satisfactory relief from the Bolivian
>government, were forced into massive and widespread public protests.  To
>protect the company's contract the Bolivian government took extraordinary
>measures against its people, including a declaration of a state of
>emergency, the suspension of constitutional rights, and the violent
>repression of the protests, resulting in more than 100 injuries and the
>death of one 17 year old boy, Victor Hugo Daza.  In April 2000, with the
>government unable to stop the protests, the company abandoned its
>management of the water system and left the country.
>
>THE BASIS OF OUR DEMAND FOR PARTICIPATION
>
>To be clear, in our view the World Bank/ICSID should not be handling this
>case to begin with.  The World Bank/ICSID system is one of what the New
>York Times recently called "secret trade courts" ("A Fairer Trade Bill" New
>York Times editorial, July 25, 2002), in which urgent public matters are
>decided behind a shroud of secrecy, without full information and without
>any of the opportunities for public vigilance and participation that are
>the basis for public legitimacy.   Such public involvement is essential to
>the legitimate resolution of disputes, like this one, that directly affect
>issues of fundamental public concern.
>
>Moreover, the World Bank/ICSID handling of this case is even more
>unjustified for two specific reasons unique to this case:
>
>First, the World Bank is by no means a neutral party in this matter.  It is
>well-documented that it was the World Bank itself which directly forced the
>government of Bolivia to privatize the water system of Cochabamba, making
>that privatization a condition for both debt relief and funds for water
>system expansion and thereby setting the events of this case in motion.
>Additionally, during the water revolt in Bolivia in April 2000, World Bank
>president James Wolfensohn personally made public comments about the case,
>justifying water price increases.  Further, despite the Bank's role in the
>history of this case, Mr. Wolfensohn violated one of the most important
>principles of objectivity when he directly appointed the President of the
>arbitration tribunal that will decide the case.  These facts have created
>strong and well-justified public doubt that ICSID can resolve this dispute
>fairly.
>
>Second, Bechtel/Aguas del Tunari's claim of ICSID jurisdiction rests
>entirely on a bogus claim of being a Dutch corporation (and therefore
>benefiting from Holland's bilateral investment treaty with Bolivia which
>invokes ICSID as arbitrator of any trade disputes between the two
>countries). Bechtel/Aguas del Tunari moved its registration to Holland only
>after it signed its water contract with Bolivia, in a forum-shopping
>exercise already repudiated by the Dutch government.
>
>Given, however, that the World Bank/ICSID has acceded to Bechtel/Aguas del
>Tunari's request to take this case, this makes it all the more imperative
>that the process be opened to public participation and scrutiny, as laid
>out in this letter.
>
>We would also note that Bechtel/Aguas del Tunari has already made plain
>their willingness to advance fraudulent information about the case.  In
>response to widespread public and press attention to the company's rate
>hikes, a Bechtel Enterprises spokeswoman, Ms. Gail Apps, widely distributed
>the following statement to members of the public and the media inquiring
>abut the rate increases it imposed, "For the poorest people in Cochabamba
>rates went up little, barely 10 percent."  Data drawn directly from the
>water company's computers make clear that the rate increase in question
>averaged more than 50%.
>
>If Bechtel/Aguas del Tunari is willing to assert clearly fraudulent
>information such as this on the public record, one can only imagine what
>misinformation the company will be willing to provide to the tribunal
>behind closed doors and away from public scrutiny.  For this reason as
>well, civil society groups directly knowledgeable about the facts at hand
>must be able to participate actively in the case, to assure that the
>tribunal receives a complete and accurate rendering of those facts.
>
>THE METHODS OF PARTICIPATION PROPOSED
>
>For all these reasons, we propose that the Tribunal adopt the following
>procedures:
>
>1) Grant the Petition of Affected Individuals and Organizations to
>Participate in the Case
>
>We call on the Tribunal to grant the petition to participate made by key
>Bolivian leaders, including Oscar Olivera of The Coalition for Water and
>Life; Father Luis Sánchez, a member of Cochabamba's public water company
>board of directors (SEMAPA); Omar Fernández of the Cochabamba Federation of
>Irrigators; and Congressman Jorge Alvarado, President of the Cochabamba
>delegation of the Bolivian Congress.  These leaders, represented by able
>and experienced Bolivian and U.S. counsel, represent tens of thousands of
>people with a direct stake in the case.  Their participation is essential
>to legitimate resolution of this dispute.
>
>2) Publicly Disclose all Documents Filed with the Tribunal
>
>In order to provide for adequate public scrutiny of the claims made by the
>two parties, especially given the record of misinformation, we call on the
>Tribunal to place into the public record all documents filed with the
>Tribunal.
>
>3) That the Tribunal Members Travel to Bolivia to Receive Public Testimony
>
>It is clearly within the purview of the tribunal to come directly to
>Cochabamba, Bolivia and receive testimony from the people directly affected
>by the case and who have important information to share with the tribunal:
>
>   ".the Tribunal may, if it deems it necessary at any stage of the
>proceedings.visit the scene connected with the dispute, and conduct such
>inquiries there as it may deem appropriate. [Convention On The Settlement
>of Investment Disputes Between States and Nationals of Other States:
>Powers And Functions Of The Tribunal, Section 3, Article 43].
>
>We call on the panel to invoke that power in this case and to travel to
>Cochabamba to receive appropriate public testimony relevant to the case.
>
>4) That the tribunal hearings be made completely open to the public.
>
>All tribunal hearings should be open to the public, including making all
>transcripts of the testimony public, as well as all tribunal decisions and
>awards.
>
>CONCLUSION
>
>No ICSID case has ever drawn the public attention that this case has and
>will continue to, and for good reason.  The actions of Aguas del
>Tunari/Bechtel in Bolivia left a city of more than 600,000 people in
>turmoil for four months.  They left hundreds injured and one young boy
>dead, and jeopardize thousands of peoples' access to the most fundamental
>element of life.  This case is about far more than the calm transfer of
>assets from one economic institution to another.  It is a matter of deep
>importance to far more than the two parties who now have formal access to
>the process.  We hope the Tribunal will grant our requests and the petition
>to participate, and will honor the legitimate right of civil society to
>also have an active and constructive role in this case.
>
>Sincerely,
>
>[list of names under development]
>
>Bolivia
>
>Oscar Olivera, Fedration of Factory Workers and Coalition for the Defense
>of Water and
>Life (La Coordinadora)
>Gabriel Herbas, Bolivian Forum on the Environment
>Marcela Olivera, Coalition for the Defense of Water and Life (La
>Coordinadora)
>Omar Fernández, Cochabamba Federation of Irrigators
>Father Luis Sánchez, member boiard of directors, SEMAPA (public water
>company) Jorge Alvarado, President of the Cochabamba delegation of the
>Bolivian Congress
>Jim Shultz, executive director, The Democracy Center
>Tom Kruse, Center for Agriculture and Labor Development Studies (CEDLA)
>
>United States
>
>Sarah Anderson, Institute for Policy Studies, Global Economy Project
>Nancy C. Alexander, Citizens' Network on Essential Services
>Marie Dennis, Director, Maryknoll Office for Global Concerns
>Jerry Mander, President, International Forum on Globalization
>Mark Ritchie, Institute for Agriculture and Trade Policy
>Kevin Danaher, Co-Founder, Global Exchange
>Cam Duncan, Inter-American Regional Secretary, Public Services International
>Anthony Arnove, Editor, South End Press
>Lori Wallach, Director, Global Trade Watch, Public Citizen
>
>The Netherlands
>
>Edith van Overveld, Latin America Centre, Netherlands
>Berrie Jurg, Friends of the Earth, Netherlands
>
>Canada
>
>David Diamond, Headlines Theatre
>
>Ghana
>
>Rudolf Amenga-Etego, Integrated Social Development Centre, Ghana
>Charles Abugre, Integrated Social Development Centre, Ghana
>Patrick Apoya, Community Partnerships For Health and Development, Ghana
>Denis Chirawurah, Peoples's Actions For community Transformation, Ghana
>
>
>cc: Alejandro Escobar, ICSID general counsel
>      Claudia Frutos-Peterson, ICSID counsel