Government energy plans "ambitious" - IMF report

The Bolivian government's development plan is ambitious, in particular in the areas of hydrocarbons, mining, electricity and infrastructure, according to an IMF country report. "While strategic control of these sectors would remain in the hands of the state, the authorities favor entering into partnerships with the private sector for the implementation of the plan, with a view to improving access to modern forms of management, technology and financing." The report adds, however, "the implementation of investment projects has suffered delays, while private investment remains low, reflecting in part uncertainties over the legal framework and a high tax burden in strategic sectors." "In the hydrocarbon sector, below-market fuel prices for domestic consumption limit the price paid to private upstream contractors to US$27 a barrel; in addition, two royalties equivalent to 50% of the value of production further reduce the incentives to explore." For the 76-page document, go to this link