Bolivia nationalizes electrical grid

LA PAZ, Bolivia (AP) — President Evo Morales announced Tuesday that his government is completing the nationalization of Bolivia's electricity sector by seizing control of its main power grid from a Spanish-owned company.

Morales took advantage of the symbolism of May Day, the international day of the worker, to order troops to occupy installations of the company, a subsidiary of Red Electrica Corporacion S.A.

"We are nationalizing the Transportadora de Electricidad in the name of the Bolivian people as a fitting homage to the workers who fought for the recovery of our natural resources and basic services," Morales said during a ceremony at the presidential palace.

Morales' fully placing another of what he deems basic services under state control comes as neighboring Argentina moves to seize seizing control of the country's oil company, YPF, from Spain's Repsol, SA, which had held a majority interest.

The policy has discouraged foreign investment, and Spain's ambassador to Bolivia, Ramon Santos, told reporters on Tuesday measure such as the electrical grid takeover "generate legal insecurity."