Category: Business

Information regarding the business sector.

Bolivia, with 75% of the world commercialization of the Brazil nuts signs contract with Eastern Europe.

Bolivia is the country that has 75% of the world commercialization of almonds, followed by Brazil and Peru. It is the primary source of economic income for more than 100 communities. The state-owned Empresa Boliviana de Alimentos y Derivados (EBA) diversifies its export market by signing a contract for the operation of foreign trade in almonds to Eastern Europe.

Minera San Cristobal stops for the third time, and Potosi says it loses $143,472 per day

San Cristóbal is by far the largest company in the country’s mining history. According to the figures of the Government, the royalties collected between January and July of this year reached a total of 206 million Bolivians, less than the 376.4 million obtained in a similar period in 2019, that is to say, 45.3% less. The suspension or non-export of minerals for one day from San Cristóbal lose around one million Bolivians, which impacts the execution of the different projects planned by the Government.

YPFB latest updates

In July 2020, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) signed an agreement with Peru’s Petroperú for the sales of up to 2,600b/d of HS diesel and 650b/d of 84 octane gasoline until the end of the year. Volumes may increase under the agreement. In March 2020, Petrobras and YPFB signed an amendment to their natural gas supply contract, through which YPFB’s supply obligation to Petrobras was to 14-20.00mcm/d, allowing to trade the surplus volume of YPFB’s contracts with private producers. The agreement is valid through 2026. Petrobras pursues its divestment programme, which includes the sale of company’s 51% stake in the TBG pipeline, connecting Bolivia and Brazil. Additionally, the Brazilian NOC is likely to sell its producing assets located in Bolivia over the next five years.

BoA manages to generate $4 mn in July

The Bolivian airline BoA in July managed to generate $4 million. The figure represents 13% of the $25 million it made monthly before the Covid-19 pandemic. In May, BoA requested a US$ 52 million loan from the Government to pay salaries, rent, renovations and other expenses, which would enable the airline to emerge from the crisis by December 2022, by the State-owned company’s Rescue Plan.

Entrepreneurs estimate a loss of $61.78 million for their sector and $344.83 million for the region

The Federation of Business Entities of Cochabamba (FEPC) calculated a loss of more than 430 million bolivianos ($61.78 mn) for its sector and more than 2.4 billion ($344.83 mn) for the entire region during the 12-day blockade. The manufacturing and industrial area of Cochabamba reports a loss of more than 157 million bolivianos ($22.56 mn); trade, 156 million ($22.41 mn); the agricultural sector 109 million ($15.66 mn); international transport 7 million ($1 mn); exports and customs clearance 138 thousand bolivianos ($19,827).

Entel shareholders will auction 4,541 shares

The Bolivian Stock Exchange (BBV) will auction 4,541 ordinary shares this Thursday. These shares represent 0.035% of the company’s share capital and correspond to regular transfers made by the company’s minority private shareholders. The entity clarified that this public auction does not compromise the State’s stock package.

Bolivia loses about a million dollars in tolls due to blockades

Vías Bolivia reported that the road blockades in Bolivia generated damage of more than Bs 6.5 million (about one million dollars) due to the lack of toll collection for the mobilizations. More than 160 points of blockades were identified throughout the country for 12 days, leaving damage to the infrastructure of Vías Bolivia and sections of road affected by the use of explosives in the cuts. The proceeds from Vías Bolivia go to the Bolivian Highway Administration (ABC) for maintenance of the country’s backbone network.

Ferroviaria Andina invested $41 million in new trains and locomotives

During the last five years, Ferroviaria Andina has invested almost 41 million dollars in the train network in the west of the country for track maintenance, station improvement, technology acquisition and the purchase of new trains. More than $10 million was spent on upgrading and extending the railways and $16 million on three new locomotives of the Swiss brand Stadler.

Mutun’s steel project disbursed about $104 mn, but the progress of the work is not clear

The Mutun steel project to date has disbursed around 104 million dollars. However, there are inconsistencies in the progress of the work; the government argues that the development is 3% and the Consul General of China Wang Jialei reported that the company Sinosteel, which executes the project, has an advance of 40%. The steel plant has already had two failed attempts: with the Brazilian EBX in 2006 and with the Indian Jindal in 2012. In January 2019, the construction of the steel plant began with a 30-month completion period.