ETI turns to ICSID over Entel nationalisation

15 Jul 2008

BNamericas is reporting that Telecom Italia owned holding company Euro Telecom International (ETI) is looking to the World Bank’s Centre for Settlement of Investment Disputes (ICSID) to resolve questions concerning the value of Entel, the Bolivian fixed line telco. Currently controlled by ETI, Entel is in the process of being nationalised by the government, but disagreements over the value of the company have arisen. The move comes after the Bolivian government issued a supreme decree to re-nationalise Entel at the beginning of May 2008. Initial reports had indicated that the government had set a time frame of two months to establish a price for the telco, also stipulating that any outstanding Entel debts would be deducted from the price it would pay. Following recent developments, it is expected that the process of reaching an agreement will run significantly beyond original estimates for concluding the sale.