This dispute arises out of Bolivia's attempt to privatize the water services of its third largest city, Cochabamba. In 1999, Bolivia removed operation of the city's sewage and water system from SEMAPA, the Cochabamba water and sewage agency, and granted a 40-year concession to operate the system to Aguas del Tunari, S.A. Within weeks of taking control of the water system, the company raised water rates by an average of over 50% and in some cases far higher. Unable to pay their water bills, the people of Cochabamba participated in widespread public protests that caused the Government of Bolivia to declare a state of emergency, suspend constitutional rights, and ultimately to use violence to repress the protests, injuring more than 100 people and killing a 17 year-old boy. When these measures failed to halt the protests, Aguas del Tunari abandoned its management of the water system and left the country. Aguas del Tunari has now brought a claim to this Tribunal demanding compensation for anticipated profits lost as a result of its departure.