Government and private sector join forces to manage the approval of the law that promotes the exploration and exploitation of hydrocarbons

The following is a machine translation of a Ministry of Hydrocarbons and Energy release

The national government and the Confederation of Private Entrepreneurs of Bolivia (CEPB) agreed to manage the approval of the bill prepared by the Ministry of Hydrocarbons and Energy that seeks to increase investments in the exploration and exploitation of hydrocarbons, which promotes close collaboration with the private sector.

This bill not only seeks to encourage new investments, but also to improve the execution of resources from the Fund for the Promotion of Investment in Hydrocarbon Exploration and Exploitation.

The initiative will be developed in conjunction with the private business sector, which will be responsible for making the necessary arrangements with the competent authorities for the approval of the law. This commitment was ratified in a document signed by government authorities and directors of private associations and the CEPB.

“The national government has taken several initiatives. There is the biodiesel plant, there is the HVO plant project, there are our exploration projects that have already yielded results, such as the Mayaya Centro-X1 well and other elements that guarantee that, in the future, we will have fuels,” said President Luis Arce at the end of the second meeting with the national business leaders.

Regarding the direct import of liquid fuels, the Government confirmed that this practice is permitted under current regulations and agreed to continue working on simplifying the procedures required for the private sector to import fuels for its own consumption. To move forward in this direction, a meeting was scheduled for Monday, August 19, headed by the Ministry of Hydrocarbons and Energy.

In addition, the signed agreement agreed to promote investment in alternative and environmentally friendly energy sources, with the aim of reducing the use of natural gas in electricity generation and promoting its export to neighboring countries.

Meanwhile, the business sector expressed its support for Supreme Decree 5197, which encourages the production of biodiesel by the private sector through a tax incentive scheme that includes the importation of capital goods with zero tariffs and VAT (Value Added Tax).

Both parties also agreed to strengthen the industrialization plan with import substitution, and the business community committed to identifying potential productive sectors for development.

“Today, Bolivia, with this arsenal of measures that we have agreed upon with the private sector, has the best opportunity to encourage and increase exports and, therefore, generate the resources we need to guarantee stability and, therefore, generate greater certainty for the population,” said Arce in relation to the 17 points established in the agreement.