Dear Members of the Tribunal,

In accordance with the Tribunal’s directions in Procedural Order No. 12, Guaracachi America, Inc. (GAI) and Rurelec PLC (Rurelec, and together with GAI, the Claimants) submit their response to the Plurinational State of Bolivia’s (Bolivia or Respondent) application for security for costs of 12 February 2013 (the Application). For the reasons set out in this letter, the Respondent’s Application is without legal or factual merit and must be rejected.

An application for an interim measure under the 2010 UNCITRAL Arbitration Rules is governed by Article 26. Article 26(3) provides that:

[t]he party requesting an interim measure . . . shall satisfy the arbitral tribunal that:

(a) Harm not adequately reparable by an award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted; and

(b) There is a reasonable possibility that the requesting party will succeed on the merits of the claim. The determination on this possibility shall not affect the discretion of the arbitral tribunal in making any subsequent determination.1