Congress set to approve hydrocarbons bill

Bolivia's President Carlos Mesa has handed over the decision to approve the government's controversial hydrocarbons bill to congress, a spokesperson from the mining and hydrocarbons ministry told BNamericas, clarifying erroneous press reports saying Mesa himself had ratified the bill. Under Bolivia's constitution the decision now falls to the president of the country's congress, Hormando Vaca Díez, who has announced that he will pass the bill, the spokesperson said. "Congress is in a session right now," the spokesperson said Tuesday afternoon. "It is simply a matter of signing the bill." Once the bill is signed, it will take effect in a matter of days, the official said. This will likely happen during the session that was under way on Tuesday afternoon. Congress approved the bill with 40 modifications made by the senate on May 5 and submitted the proposed legislation to the executive branch on May 7. Mesa's 10-day period to either accept or reject the bill expired at midday on May 17. The most controversial article fixes an 18% royalty and 32% tax on hydrocarbons production to which the opposition socialist movement party MAS adamantly voiced its disapproval as it wanted to see royalties set at 50%. The issue of hydrocarbons production and exports has caused civil strife in Bolivia, a country rich in gas reserves, for the last few years, and led to the ousting of Mesa's predecessor Gonzalo Sánchez de Lozada. Many in Bolivia want the whole oil and gas industry nationalized.