The Bolivian government is seeking to restore the confidence of the international market by announcing that it will respect all existing hydrocarbon and lithium contracts. This statement comes at a crucial moment, after years of regulatory instability that affected the arrival of foreign capital.
A new model for lithium and energy contracts
The Minister of Energy, Mauricio Medinaceli, assured that the agreements established with Russian and Chinese companies under previous governments will remain unaltered, in spite of criticisms about lack of transparency. He stated that the priority is to send a message of legal stability to investors, stressing that ideology cannot interfere in contractual security.
As part of the new approach, the Executive is preparing a hydrocarbons law to be presented in the first half of the year. This legislation will include new contract models, a more flexible fiscal regime and mechanisms to facilitate the participation of private capital. The reform seeks to reverse the productive stagnation generated by prolonged state control.
The lithium occupies a central place in the development strategy. The government has committed to continue working with companies that have already invested in exploration, while studying a specific law for the sector. The intention is to maintain current contracts and guarantee predictable conditions for new players.
At the same time, Bolivia faced protests following the elimination of fuel subsidies in December. Although the government reached partial agreements with labor unions, the social climate remains sensitive to future economic reforms.
President Rodrigo Paz has initiated a diplomatic shift by re-establishing ties with the United States and multilateral lenders. This shift marks a break with the previous geopolitical orientation, bringing Bolivia closer to traditional sources of financing and investment. Some energy companies from the region and North America have already shown interest in participating in tenders that could start in 2027.
Source and photo: Reuters