BOLIVIA Trends and Developments Contributed by: Jorge Inchauste and Rosario Echeverría, Dentons Guevara & Gutiérrez S.C.
• In 2019, YLB entered into a joint venture agreement with ACI for the industrialisation and commercialisation of lithium. To formal - ise the agreement, the Legislative Assembly proposed the enactment of Supreme Decree No 3738. However, the Supreme Decree was never issued due to COMCIPO’s pressure on the project. Throughout October 2019, COMCIPO initiated riots and strikes against the enactment of the Supreme Decree, which led to the overthrow of the Bolivian State in November 2019. • On 25 January 023, the Potosi Civic Com - mittee rejected the contract signed between YLB and Chinese company CATL BRUNP & CMOC (CBC) for the direct extraction of lithium (EDL) in the Uyuni and Coipasa salt flats. Based on the background described above, social control by the social sectors is important for lithium projects to be executed. Conclusions While private investors face several challenges in implementing lithium projects in Bolivia, there is still hope that the country can achieve its goal of exploiting its reserves and position itself as a benchmark in the global lithium market. The tenders launched by YLB between 2021 and 2024 demonstrate a drastic change in the dynamics of the lithium industry in Bolivia, show - ing that the Bolivian State opened the oppor - tunity for foreign investors to participate in its industrialisation plan.
However, it is undeniable that the Bolivian State must also grant guarantees to investors. The investment rules for lithium have not been suf- ficiently developed so that investors can provide the outcome of their negotiations and the execu - tion of projects. Likewise, the economic policies of the Bolivian State (legislative and executive bodies) must be aligned. Beyond the interests of each politi - cal party, the Legislative Assembly should join efforts to prioritise the review and approval of lithium agreements so that these projects can be executed promptly, considering the crisis in the exploitation and commercialisation of other resources. In addition, the Bolivian State must support for - eign investors in complying with prior consul - tation with indigenous communities and social control of the projects. For their part, investors must observe the com - plexities of Bolivian regulations when structuring their lithium projects and enlist an interdiscipli - nary team to assist them in complying with inter - nal regulations, prior consultation and Social Control. In sum, the key to overcoming these challenges is for the Bolivian State and investors to work together.
87
CHAMBERS.COM
Powered by FlippingBook