The Ministry of Hydrocarbons and Energy in Bolivia recently released a statement announcing a collaboration between the national government and the Confederation of Private Entrepreneurs of Bolivia (CEPB) to manage the approval of a new bill aimed at increasing investments in the exploration and exploitation of hydrocarbons. This bill is designed to foster closer collaboration with the private sector and encourage new investments in the sector.
One of the key objectives of this bill is to improve the execution of resources from the Fund for the Promotion of Investment in Hydrocarbon Exploration and Exploitation. By working closely with the private business sector, the government hopes to streamline the approval process for the law and ensure that it aligns with the needs and priorities of both parties. This commitment was formalized in a document signed by government authorities and directors of private associations and the CEPB.
President Luis Arce highlighted several initiatives that the national government has undertaken to promote investment in the hydrocarbons sector, including the development of a biodiesel plant, the HVO plant project, and successful exploration projects such as the Mayaya Centro-X1 well. These initiatives are expected to contribute to the country’s energy security and future fuel production.
In addition to promoting investment in traditional hydrocarbons, the agreement also focuses on encouraging investment in alternative and environmentally friendly energy sources. This includes reducing the use of natural gas in electricity generation and promoting its export to neighboring countries. The government and the private sector are committed to exploring new opportunities in this area to diversify Bolivia’s energy portfolio.
The agreement also includes provisions to support the production of biodiesel by the private sector through a tax incentive scheme. This scheme includes the importation of capital goods with zero tariffs and VAT, providing additional incentives for businesses to invest in biodiesel production. Both parties have also agreed to strengthen the industrialization plan with import substitution, with the business community committing to identifying potential productive sectors for development.
President Arce emphasized the importance of these measures in encouraging exports and generating the resources needed to ensure stability and certainty for the population. The 17 points established in the agreement outline a comprehensive strategy for promoting investment in the hydrocarbons sector and advancing Bolivia’s energy goals.
Overall, the collaboration between the national government and the private sector in Bolivia represents a significant step towards increasing investments in the exploration and exploitation of hydrocarbons. By working together to streamline approval processes, promote alternative energy sources, and support biodiesel production, both parties are laying the groundwork for a more sustainable and prosperous energy future for the country.