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Bolivia Government Seizes Spanish-Owned Power Company

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Bolivian President Evo Morales says the government is taking over the Spanish-owned power company and he ordered the army to seize control of the electricity grid.

Mr. Morales said Tuesday Spain's Red Electrica company's investment in Bolivia was inadequate. He also said the government should be responsible for generating electricity.

Mr. Morales did not say how the Bolivian government would compensate the Spanish company. Its Bolivian assets were responsible for less than 3 percent of its 2011 revenue.

Bolivia's move comes just weeks after Argentina said it would nationalize the local branch of Spain's Repsol's oil company. Argentine President Cristina Fernandez de Kirchner also accused that Spanish-owned company of a lack of investment in the local economy.

Article by VOA News