Bolivia’s road blockades affecting construction firms

Bolivian construction firms are facing cost increases and delays as a result of two weeks of road blockades led by supporters of former president Evo Morales, which have caused estimated economic losses of US$832mn, according to the government.

“[The protests] not only prevent transport between east and the west Bolivia and isolate central cities, but also affect connections with the international markets of Peru, Brazil, Argentina and Paraguay, and the Pacific-Atlantic connection as well,” Javier Arze, head of Santa Cruz construction chamber Cadecocruz, told BNamericas.

Highways were blocked at 24 points on Friday, mostly in Cochabamba department, daily La Razón reported.

Construction suppliers' production has slowed since the protests began, resulting in price increases.

This has worsened other issues affecting the local construction sector, such as fuel scarcity and lack of access to US dollars, Arze said, adding that the combination of these factors is forcing firms to delay investments, which in turn is delaying existing projects and raising costs, as well as forcing local companies to assume more debt.

“Several companies have started to make transactions using Chinese yuan to meet their obligations,” the official stated.

COUNTER-PROTESTS

Some of those affected by the protests have begun demonstrations of their own to demand government action against the blockades.

In the city of Cochabamba, local truck drivers blocked an important avenue and the road in front of the departmental government building to demand a solution, state-owned news agency ABI reported.

Cochabamba is now facing shortages and rising prices, since all main roads linking the department with the rest of the country are blocked, the head of the local private companies' federation, Luis Laredo, told Bolivia TV.

Other counter-protests were also carried out in La Paz.

Morales’ backers are demanding the resignation of several judges whose terms were extended last year after congress failed to agree on a list of candidates for judicial elections. 

These include the constitutional court magistrates that ruled last month that Morales cannot run as a candidate in next year’s presidential elections. 

Because of this, the government accuses the former president of trying to destabilize the country to salvage his political career.