IBM Canada Ltd.

Published purpose

The goal of this project is to strengthen public sector reform and support the sustainable management of the environment and natural resources. This improves the regulatory governance of the hydrocarbon sector in Bolivia in order to ensure sustainable resource development while maximizing benefits to Bolivia. This capacity building and institutional strengthening project builds on the achievements realized during the implementation of previous initiatives funded by the CIDA in Bolivia. The government agencies mandated to oversee the transformation and regulation of the hydrocarbon industry require some assistance in institutionalizing and maintaining new systems and procedures. These agencies are responsible for the management and sustainability of Bolivia's oil and gas resources and for ensuring that these resources are exploited in a technically and environmentally sound manner. These agencies have a key role in ensuring that Bolivia benefits economically and receives a fair return from development of their resources. The discovery of natural gas reserves has brought forth hope that a range of energy needs can now be addressed. The Bolivian government is faced with promoting strategies to develop or find new or alternative markets (increased exports, liquefied natural gas, petrochemical industry) and with promoting development that is in the best interests of the country. Given the abundance of natural gas, the Government of Bolivia is considering policies to promote domestic access to this resource, including in rural areas. By strengthening the capacity of regulatory agencies, the project helps ensure that Bolivia: effectively manages and regulates the hydrocarbon sector; finds and develops new or alternative markets for its natural gas reserves; increases domestic gas coverage and exports; receives a fair return on the development of its oil and natural gas resources; and obtains increased revenue from royalties and taxes in the sector.