The approval of the credit of more than $40.8 million will allow the financing of public investment projects in the Autonomous Region of Gran Chaco, postponed for more than 20 years. Funding is subject to the Public Investment Project Financing Program Operational Regulations, which provide for the financing of local counterparties and public investment projects with physical advancement.
Once Bolivia completes the Flegt Plan accession process with the European Union (EU), forestry exports expected to increase to more than $20 million, currently exporting timber to the EU worth $12.06 million. The Flegt (Law Enforcement, Governance and Forestry Trade) is a document that confirms that a shipment of wood or products derived from it has been produced legally, following the laws of the exporting country. Only countries that join the Voluntary Partnership Agreement (AVA) with the EU can issue Flegt licenses.
After 12 years of the export ban, in which the country ceased to receive more than $1 billion, the national government enacted the supreme decree authorizing the free export of agricultural products and promoting production; however, President Añez warned that the rule should not mean an increase in prices in the domestic market. The decree exempts the export of products that have self-sufficiency, such as wheat. Soybean Export focuses on four countries: Colombia, Peru, Ecuador and Chile. Bolivia seeks to enter China’s Market with soy; currently, the phytosanitary opening is in process. It estimates that this will generate up to $500 million in a year.
The Ministry of Economy reported that at the end of 2019, external debt stood at $11,079 million, representing 26% of Bolivia’s Gross Domestic Product (GDP).
According to data from the Bolivian Institute of Foreign Trade (IBCE), until November last year gold exports reached a value of $ 1,542 million and zinc to $ 1,214 million, both concentrating 47% of mineral commodities, with a total amount of $ 3,787 million. Exports of hydrocarbons (natural gas, gasoline and LPG) totalled $ 2,593 million, 32% of Bolivian exports. As of November, traditional and non-traditional exports reached a value of $ 7,991 million, down 4% than in the same period of 2018.
Herland Soliz, executive chairman of Bolivian Fiscal Oilfields (YPFB), reported on Thursday that there is a urea “overstock” at the Urea and Ammonia Plant, without giving figures. Faced with this situation, they decided to stop the production of fertilizer. Bolivia currently produces 54 million cubic meters of gas per day(mm3/d). 13mm3/d meet domestic demand, 30 mm3/d are delivered to Brazil and between 10 and 12 mm3/d to Argentina. Using the urea plant requires volumes of gas to produce fertilizer that has no optimal sales prices. The Plant has been paralyzed for two months and has no date to resume its activities.
Peru and Bolivia on Thursday signed an agreement ending the trade conflict over imports and exports of agricultural products between the two countries. Among the points agreed by both countries are the restitution of phytosanitary permits and border inspections. According to data from the Agricultural Chamber of the East (CAO), about 30% of oleaginous production goes to Peru. According to the Bolivian Institute of Foreign Trade (IBCE), Peru places in the Bolivian market about 2,000 products, but the country only sells 150. This imbalance generated a trade deficit of more than $ 1 billion for Bolivia over the past six years. Peru pledged to open its market to more Bolivian products.
The Minister of Hydrocarbons, Víctor Hugo Zamora, reported that the Government of Bolivia decided to break its contract with a Cuban company for the sale of urea, because the set price is low, causing economic damage to the country. He did not specify how much damage it caused. The product will be incorporated into the domestic market to improve its price and competitiveness. In June 2019, the government of former President Morales signed agreements with Havana for the export from Bolivia of wood, urea and fabrics for about $12 million.
The Potassium Chloride Plant has a production capacity of 350 thousand tons per year, and today we are producing only 25,000 tons per year, less than 10%,” said Vice Minister for High Energy Technologies, Luis Ferrufino Terceros, yesterday. The plant’s “poor design” caused evaporation pools to collapse and brine extraction equipment to become damaged by flooding in the salt flat during the rainy season. Bolivian Lithium Sites (YLB) calls on insurer Credinform to take care of the loss of brine extraction pumps that were lost underwater.
After 20 years, Petrobras’ presence in Bolivia begins to come to an end; the Brazilian company has expressed an intention to sell its assets in Bolivia and Uruguay. The decision is the sum of several factors, such as the decline in production of the San Alberto and San Antonio fields; suspension of exploration in San Telmo Norte and Astillero in the Tariquía reserve and the lack of the company’s resources to continue operating in areas such as Presal in Brazil.