(By Patrick Sheil, BNamericas.com)

Bolivia's basic services regulator Sisab has invited local auditors Pozo y Asociados to carry out an audit of capital La Paz waterworks concessionaire Aisa after a last minute final review of proposals from as many as 20 specialist firms, a Sisab spokesperson told BNamericas.

"Sisab has been in communication with the firm to establish the framework for the audit," the spokesperson said.

Sisab had until Friday (December 2) to pick an auditor after a previous attempt stalled when a Sisab evaluation committee ruled bids by three short-listed consultancies inadmissible.

The government ordered Sisab to carry out a wide-ranging audit of Aisa after local residents groups launched a series of street protests in 2003 against the concessionaire, alleging poor service just six years into a 30-year concession.

The auditor will carry out an economic, commercial, administrative and technical appraisal of Aisa's performance from 1997 to date.

The government had promised protestors it would seek the rescission of the contract on the grounds that Aisa had failed to comply with its investment obligations.

But the drawn out process has produced grumbles from residents' pressure group Fejuve in El Alto neighborhood. Fejuve believes there are behind-the-scenes machinations by government and the regulator to favor transnational firms on account of the amount of money at stake, local paper El Diario reported.

Pozo y Asociados is registered with the banking regulator as an associate firm of Moores Rowland International.