Bolivia Seeks to Attract Foreign Investment in Energy Sector

Strategic Insights -

Bolivia's government, under President Hugo Banzer, is committed to solidifying its position as a leading energy hub in South America, attracting significant foreign investment in the process. Vice President Jorge Quiroga highlighted the country's potential, citing substantial investment, substantial natural gas reserves, and strategic partnerships with major energy companies. The U.S.-Bolivia Business Partnership, launched in Washington, aims to foster greater collaboration in the energy sector, with Enron Corp.'s Joe Hillings emphasizing Bolivia's appeal to international investors.

Key Takeaways:

  • Bolivia aims to become the energy hub of South America, leveraging its strategic location, neighbors, and energy resources.
  • The country has attracted over $2.5 billion in foreign investment in the energy sector between 1993 and 2000, with proven natural gas reserves approaching 29 Tcf.
  • Bolivia's energy sector has seen significant growth, with the opening of the Bolivia-to-Brazil gas pipeline in February and the beginning of construction on the Enron and Royal Dutch/Shell Group's Cuiaba pipeline.
  • By 2005, five export pipelines will be operational, and several transmission lines will be exporting electricity to Brazil.
  • The U.S.-Bolivia Business Partnership, launched in Washington, aims to facilitate greater cooperation in the energy sector and attract further foreign investment.
  • The partnership was initiated with a keynote address by Vice President Jorge Quiroga and an introduction by U.S. Undersecretary of Energy Ernest Moniz.
  • The Department of Energy will send a delegation to Bolivia next week to discuss further environmental cooperation on projects like the Cuiaba pipeline.
  • Bolivia's efforts to develop natural gas have resulted in a quadrupling of its reserves, according to U.S. Undersecretary of Energy Ernest Moniz.
  • Bolivia is becoming a regional hub for telecommunications links, pipelines, and roads, making it an attractive destination for foreign investment.
  • Brazil is expected to play a crucial role in Bolivia's future energy plans, with the Cuiaba pipeline serving as a key project.

Statistics:

  • Over $2.5 billion in foreign investment has been attracted in the energy sector between 1993 and 2000.
  • Proven natural gas reserves in Bolivia approach 29 Tcf.
  • Five export pipelines are expected to be operational by 2005.
  • Several transmission lines will be exporting electricity to Brazil by 2005.

Sources:

  • TOD (Trece Diarios), 7-16-99, p.8
  • U.S. Department of Energy, (no specific publication or date)