Bolivia is an attractive destination for foreign and national investors for its diversity and wealth of natural resources, sound macroeconomics and democratic political stability. The implementation of the existing legislation regarding foreign investment aims at ensuring an adequate climate of security and protection to foreign investors in accordance with the country’s policies of industrial and technological development.
Bolivia provides stable public policies and effective institutions in the financial sector, which enables the country to compete for foreign direct investment at an international level. The Bolivian Government is entirely committed in providing full support to investment portfolio projects that have a clear advantage to the infrastructure and economic development of the country.
For example, Luis Alberto Arce – the current Minister of Economy and Public Finance who was quoted in the Financial Times on the 10th May 2012 stated:
“The Bolivian Constitution recognizes, respects and protects domestic and foreign investments. For this and other reasons, investors and private foreign companies genuinely have nothing to fear when investing in Bolivia.”
In terms of GDP, the level of foreign investment in Bolivia (3.6 per cent) is one of the largest in South America and higher than the average for Latin America and the Caribbean (2.7 per cent, approximately). This growing trend reflects the confidence of foreign investors in Bolivia’s economy.
Moreover, in October 2012 the Bolivian Government issued sovereign bonds worth US$500mm in the New York stock market, which has provided good indication of investor appetite for the country’s assets and Bolivia, in 2008, was named the world’s most entrepreneurial country by the Global Entrepreneurship Monitor (GEM, Based in London).
Current investment opportunities in Bolivia include the following:
- Statewide industrialization Mutun – Concentrated products: The Bolivian Steel Company “El Mutun” (ESM) is considering the implantation of direct contracts with private companies to build plants for the industrialization of iron ore deposits in El Mutun in the department of Santa Cruz. Concentrated products include iron, sponge iron, briquetting, steel slabs, billets and rolled investments.
- Pilot Plant (Llipi – Uyuni) Product Lithium carbonate, potassium sulfate, potassium chloride and boric acid – Investment required: USD$8.4 million.
- Coipasa Experiment Station – Product: Identification of technological conditions for the possible implementation of a production plant – Investment required: USD 2 million.
- Corocoro hydrometallurgical plant – Product: High purity copper cathode Corocoro hydrometallurgical plant – investment required USD: 18.7 million.
- Shared Risk Contract Kores – COMIBOL– High purity copper cathode- Investment required: USD 10 million for the exploration phase – 200 million for the industrial phase- Start date of operations: June 2014.
- Sulfuric acid plant rehabilitation Eucalyptus – Sulfuric acid production, Corocoro hydrometallurgical plant for the production of high purity metallic copper- Investment required: USD1.599.741.
- Mine Huanuni Reactivización – Expand mining operations and metallurgical Huanuni Mining Centre with the implementation of a modern mill for processing tin – Investment required USD: 50 million.
- Mine Vinto – Requires the construction of a foundry – Investment required $us: 25.000.000.
- Metallurgical complex Karachipampa – The Karachipampa Lead/Silver Smelter is located in Potosi, Bolivia. It was constructed during the period 1985 – 1988 by Corporacion Minera de Bolivia (COMIBOL) and was never fired due to a lack of lead concentrate production in Bolivia. Investment required $us: 11.000.000.
- Hydrometallurgical zinc plants projects – Requires the installation of two zinc plants for zinc metal and to recover valuable complex concentrated companions – Investment required: $us. 500.000.000.
“Margarita Phase 1, delivered safely and to plan, will give BG Group additional net production of some 17 000 barrels of oil equivalent per day, taking total net production from Margarita to over 25 000. Already this year we have delivered new production from projects in Egypt, Norway and Thailand, together with the successful start-up of Margarita Phase 1, these developments keep us on track with our programme to deliver average 6% to 8% per annum production growth through to 2020”.
Chief Executive, Sir Frank Chapman, on key project delivered in 2012 with the first phase of development at the Margarita gas field in Bolivia now on steam.
“Bolivia for Gazprom is one of the most promising countries in Latin America in relation to oil and gas projects, which is why we have signed a memorandum of understanding with YPFB for cooperation in the field of exploration and development of hydrocarbons in Bolivia reviewing opportunities to participate in infrastructure projects also in the production of liquefied natural gas, and the ability to train specialists for the oil and gas sector.”
Gazprom’s Deputy Chairman of the Management Committee, Dr. Valery Golubev, explains following Gazprom signing a memorandum of understanding with YPFB for cooperation in the field of exploration and development of hydrocarbons in Bolivia