In late June, Suez initiated legal action against the Bolivian Government saying it had unilaterally ended its contract to supply water to the cities of La Paz and El Alto.
Negotiations are still underway involving the Bolivian Government, the privatised water utility (Aguas del Illimani) and leaders of social movements who are calling for a new socially-accountable public water utility.
Susan Spronk on Znet analyses the chance of success for the Bolivian Government in international arbitration if negotiations fail to bring about a mutual agreement. She also highlights the role of Bilateral Investment Agreements which increasingly tie the hands of developing country governments in their attempts to regulate and manage multinational companies.