Chile has not agreed to pay compensation for the use of Bolivian river Silala's water, an official from the Chilean presidential office told BNamericas, commenting on press reports.
In an interview with Bolivian paper La Prensa, Potosí governor Mario Virreira was quoted as saying: "We believe they are national waters and, therefore, would like them [Chile] to pay for 100% of their use, but Chile has offered to pay for a percentage."
However, the Chilean official said this was untrue.
Chilean and Bolivian government authorities met on Friday in Bolivia's Santa Cruz city to discuss the conflict over Silala.
The meeting is part of ongoing negotiations between the two countries to reach an amicable agreement regarding the waters, but Chile has not made any offers, the official said.
INTERNATIONAL LAW
The argument over Chile's right to use water from Silala has been going on for decades. At the heart of the debate is an issue of international law. Chilean authorities claim Silala is an international river due to the route it follows and, as such, its use is regulated by international law. Bolivia says the waters originate from 94 springs in its territory, which is not governed by international law, the report said.
Silala waters are artificially diverted to Chile by a canal built under a concession in the early 1900s to the Antofagasta-Bolivian Railway Company, a Chilean firm, and Chile has been using the water for over a century.
The real value of these waters has increased tremendously over the last few years, as they have become vital for mining companies operating in the Chilean north, while Bolivian officials argue this leaves their own productive activities without sufficient water.
ADDITIONAL CONCERNS
One of Chile's concerns is the risk of being charged retroactively for the water use. The charge could include a request to compensate Potosí for damages.
Potosí authorities complain the population faces drought while the water that should belong to them is used by companies in Chile.
When interviewed by BNamericas in 2006, then Bolivian consul in Chile José Enrique Pinelo referred to Silala as a river and said the issue was a major priority for President Evo Morales.
"Natural resources are one of the main priorities in Morales' government," said Pinelo at the time. "We will definitely discuss the future of the Silala river with Chilean authorities."
The consul was later withdrawn from Chile, reportedly for referring to Silala as a river and not a spring.
Morales has publicly expressed his intention to nationalize the river and charge the Chilean government for using its water, claiming that the river was artificially channeled into Chile a century ago.
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