Bolivia announces energy sector reforms in order to attract foreign investment and end state control

Bolivia's government announced on Thursday a proposal for a renewable energy and electricity law that aims to 'attract international investment' and reduce 'the 'country's dependency on natural gas. This could be the end of years of state control in this sector.

Hydrocarbons Minister Marcelo Blanco announced at a press event that the law would allow for private companies to be involved in energy production, export, and import, thus ending ENDE's monopoly.

He said: "With this law, we are moving from a market that is largely controlled by the government to one where the private sector has its rightful role."

The law that has been in place since 1994 would be replaced by the new legislation. This requires approval from Congress.

This is a historic shift in the energy policy of the country. The sector was nationalized from 2010 to 2012 under former president Evo Morales. This affected contracts held by Spanish, French, and British companies.

Blanco said: "We pursue energy diversification by incorporating non-conventional sources of renewable energy and ensuring equitable access to electricity.

He said that Bolivia is aiming to become a regional energy hub by building transmission cables.

(source: Reuters)