International Development Grant
Hydrocarbon Regulation
Project Number: CA-3-A030420001
Status: Closed
Country/Region:
Maximum Contribution: $13,101,217.00
Start Date: March 31, 2003
End Date: November 24, 2016
Duration: 13.7 years
Project Description
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.
Progress & Results Achieved
As of December 31 2012 technical assistance funded by CIDA through the project contributed to the following results achieved by project partners: The Bolivia Hydrocarbon Regulatory Assistance Project (BHRAP) contributed to the development of the new Hydrocarbon Law. The changes upon implementation will help to make the sector more effective and attract investment. BHRAP supported the development of regulations guidelines and capacity development to promote utilization of natural gas which has resulted in four-fold increase in residential gas connections and ten-fold increase in natural gas vehicles and the development of fertilizer and petrochemical plants. The Project supported the establishment of a hydrocarbon tax department within the Bolivian Revenue Agency modelled on Canada Revenue Agency (CRA) which is responsible for the collection and auditing of over $2.3 billion of taxes collected from the sector in 2012. An effective royalty administration system was created which allows the Government of Bolivia to collect royalties in a transparent and accountable way while making the rules and processes clearer for foreign investors. The Government of Bolivia’s total revenues from the hydrocarbon sector increased from US$1.4 billion to US$4.27 billion between 2006 and 2012. As a result the Government of Bolivia is better able to finance its own poverty reduction programs. BHRAP helped establish an energy policy and planning unit within the Ministry of Hydrocarbons. As a result the Government of Bolivia has improved capacity to forecast its energy needs and develop strategies to meet those needs. Improving access to energy for all Bolivians is a key component of Bolivia's poverty reduction strategy. The Project helped establish a new department within the state oil company and trained its staff to promote foreign investments in Bolivia in exploration/exploitation of hydrocarbon resources. As well the Project designed and delivered a very innovative socio-env
Key Information
Executing Agency:
IBM Canada Ltd.
Reporting Organization:
Global Affairs Canada
Program:
NGM Americas
Last Modified:
September 19, 2025
Development Classifications
DAC Sector:
Aid Type: Project-type interventions
Collaboration: Bilateral
Finance Type: Aid grant excluding debt reorganisation
Selection Mechanism:
Pre-APP