The Minister of Hydrocarbons, Franklin Molina, stated that the measure for biodiesel production will have a multiplier effect since it will develop a new industry, allow for greater foreign exchange and job creation.
Through a supreme decree, the Bolivian Government will encourage the construction of biodiesel plants by the private sector with the objective of generating more biofuel that is used by producers or marketed to Yacimientos Petrolófilos Fiscales Bolivianos (YPFB).
The Minister of Hydrocarbons and Energy, Franklin Molina, indicated this Wednesday that the initiative seeks to stimulate private investment in the sector and promote environmental sustainability and the production of oleiferous species such as soybean oil, cusi oil or other plant origin that promotes development of this industry.
“The objective would be to build plants that guarantee production by private entrepreneurs in the production of biodiesel, both for their own consumption and for consumption by YPFB that will provide this fuel. We will be launching a decree, a rule to encourage measures that favor new ventures by existing companies in the industry,” the authority reported.
Among the economic policy and national emergency measures announced on Tuesday by President Luis Arce is the financial and fiscal incentive program to increase biodiesel production by national private producers.
This program, based on a zero tariff tax, which in conjunction with the current zero VAT for imports of machinery and equipment for biodiesel plants, will allow increasing private investment to generate a greater flow of biodiesel production.
Data from the Eastern Agricultural Chamber (CAO) and the Association of Oilseed and Wheat Producers (Anapo), it has been identified that close to 40% of the installed oil production capacity “is idle capacity” that could generate this type of products for the supply of biodiesel by YPFB.
Molina stated that the Government's measure for the production of biodiesel will have a multiplier effect since it will develop a new industry, allow for greater foreign exchange and job creation.
“It will generate labor, foreign currency because everything that is soy cake, soy flour will be exported and generates income movement for the country,” he noted.
