Brazil, Chile court Bolivia with investment deals

By Helen Popper

LA PAZ, Dec 16 (Reuters) - Two of Latin America's leading moderate leftists, the Brazilian and Chilean presidents, will pledge investment and cooperation in Bolivia on Sunday during a visit aimed at strengthening ties.

Chile has not had full diplomatic relations with its poorer neighbor for decades but ties have warmed since Chile's Michelle Bachelet and Bolivian President Evo Morales took office last year.

The visit by Brazil's Luiz Inacio Lula da Silva aims to secure supplies of Bolivian natural gas and wrest influence from Venezuela, diplomats say.

Morales, Bachelet and Lula will sign an accord on Sunday to build a highway linking their countries from the Atlantic coast of Brazil via Bolivia to the Pacific ports of Chile, state news agency ABI reported, in a bid to increase trade.

Bachelet's trip is one of only a few by Chilean heads of state to Bolivia in recent decades, due to a bitter conflict stemming from a 19th century war in which Bolivia lost its access to the Pacific.

Anti-Chilean sentiment remains strong in Bolivia and a president was toppled four years ago over a plan to export natural gas via Chilean ports.

Relations between Bolivia and Brazil were knocked by Morales' nationalization of the energy industry in May 2006. The measure irked Brazil's state-run energy company Petrobras (PETR4.SA) -- the biggest investor in Bolivian natural gas.

The company froze planned investments following the nationalization. But during Lula's two-day visit it will announce a $750 million project to increase gas production and plans to study joint exploration ventures with Bolivia's state energy company YPFB.