The National Chamber of Industries (CNI) said that there are 150 industries paralysed in El Alto, La Paz and Cochabamba since the Carrasco-Cochabamba pipeline stopped supplying natural gas to the west of Bolivia.
alleged report of state-owned YPFB, called “El Petrolero Furioso”, reveals that Bolivia had 7.1 trillion cubic feet (TCF) in proven natural gas reserves as at December 31, 2017, and not the 10.7 TCF certified at the time by Canadian firm Sproule International Limited. The report added that now the proven reservers are less than 6 TCF.
Economy minister, José Luis Parada admits that the GDP will be lower this year, between 3 and 3.2%, and also warned that there may be an increase on inflation due to the conflicts in the country that have affected the normal supply of products
Fitch downgraded Bolivia’s ratings to ‘B+’ from ‘BB-‘, citing macroeconomic risks, which have been intensified by the recent political and social instability in the country. It estimated that the economy’s growth will slow from 3.5% to 2.5%.
According to data from the Bolivian Energy Secretary, as of 31st October the demand of gas in Brazil reached 31.14 Million cubic metres per day (MMcmd), while in Argentina reached 12.25 MMcmd. The contract signed with Brazil in 1999 stipulates a maximum shipping amount of 30.05 MMcmd and a minimum volume of 24 MMcmd. In the last quarter sale prices to Brazil were $5.56 per million BTU (British Termic Unit) and for Argentina $6.51.
Road-blockades in Bolivia are costing a daily $5 million loss to non-traditional exporters (soybean, meat and manufactures). Oswaldo Barriga, president of the Export Chamber of Santa Cruz, demanded the Government to find a solution that open the roads in the country.
Social conficts in Bolivia are causing a daily $120 million loss, which in 28 days of conflicts means a $3.3 billion loss, warned the Federation of Private Entrepreneurs of La Paz. The organisation also said that the 2019 GDP estimations has been reduced from $44 billion to $40.6 billion.
The collapse of Evo Morales’ government is likely to further delay the auctioning of transport capacity on the Gasbol pipeline to Brazil.
The industrial sector in Cochabamba, Bolivia, estimates a $500 million loss due to the current unrest in the country. He added that the lack of natural gas, due to the damages caused the the Carrasco-Cochabamba pipeline, has forced at least 65 regional industries to reduce or stop their activities.
Until October, the government of former President Evo Morales spent only BS.135.9 billion ($19.7 billion) of the national budget, which represent only 54.6% of the total Bs.249 billion ($36.1 billion) allocated for 2019.