Diapositiva 1

THE BOLIVIAN ECONOMIC PERFORMANCE AND INVESTMENT PROGRAM 2010 - 2015

ESTADO PLURINACIONAL DE BOLIVIALUIS ALBERTO ARCE CATACORAMINISTER OF ECONOMY AND PUBLIC FINANCESThe new model economic in Bolivia.......................Diap. 2Bolivian economy performance.....Diap. 8Projection Investment program 2010 - 2015Diap. 40Private investment and the new state politicalconstitutionDiap. 54

Annexes...Diap. 58

1 I. THE NEW ECONOMIC MODEL IN BOLIVIAMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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Nowadays the world not only confronts a financial crisis and its consequences in the real sector, it also confronts:

A climate crisisAn energy crisisA food crisis

In this context it is possible to talk about a structural crisis of capitalism

THE FOUR CRISES OF CAPITALISMMINISTERIO DE ECONOMA Y FINANZAS PBLICAS3

MINISTERIO DE ECONOMA Y FINANZAS PBLICASFree market. The market is the mechanism for allocating resources and the imbalance adjustor. Hypothesis: Efficient Market

The state intervenes to correct market failures (lack of redistribution of wealth and transnational monopoly of strategic companies)

1.1.An isolated State. The market is a self-regulated mechanism of the economic process2.An active participation of the state in the economy. The state must intervene in the economy through its seven facets: planner, entrepreneur, investor, regulator, benefactor, developer, banker

2.Privatization, the surplus is transferred abroad and without a precautionary management policy of Natural Resources

Nationalization and control of strategic natural resources3.3.A Primary Exporter Development Pattern 4.A pattern of industrialization and productive development 4.4The Neoliberal Economic ModelThe Economic Social Communitarian and Productive ModelPreserving macroeconomic stability as a social asset and promote economic development

MINISTERIO DE ECONOMA Y FINANZAS PBLICASHigh concentration of income, sectors excluded of society5.Redistributive State5.7.7.Growth depends only on the external demandGrowth based on external and domestic demand8.8.Investment depends on external savings, boosting debt and fiscal deficit

Generation of domestic resources for investment, fiscal surpluses and lower debt9.9.Stagnation, poverty, inequality of wealth and opportunityDevelopment, redistribution and employment generationMacroeconomic stability as an end in itself10.10.Economy focused on private initiative 6.The State is the sponsor of a plural economy

6.5The Neoliberal Economic ModelThe Economic Social Communitarian and Productive ModelStrategic sectors: Generators of SurplusSectors that generate income and employmentHydrocarbonsMiningElectricityEnvironmental ResourcesIndustry, manufacturing and craftsTourismAgricultural developmentHousingTrade, transport services, other services SurplusREDISTRIBUTIVE STATE

MINISTERIO DE ECONOMA Y FINANZAS PBLICASTHE ECONOMIC SOCIAL COMMUNITARIAN AND PRODUCTIVE MODEL6Source: New Political Constitution of the StateElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Thursday, april 15th 2010 (Hrs. 20:06)

PRIVATE- Generates employment- Generates productionand servicesStrengthening the economic independencyPromove the integration of various economic forms of production, aiming to achieve economic and social developmentPLURAL ECONOMY

COMMUNITY

- Generates productionand employment- Principles of CooperationSOCIALCOOPERATIVE- Generates productionand employmentPrinciples of solidarity workand cooperationSTATE- Promotor- Organizer- RedistributorComplementation of individual interest with collective welfarelRole of the StateECONOMIC GROWTH WELF REDISTRIBUTIONMINISTERIO DE ECONOMA Y FINANZAS PBLICASPLURAL ECONOMY7Source: New Political Constitution of the StateElaborated: Ministry of Economiy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Thursday, april 15th 2010 (Hrs. 20:06)

II. BOLIVIAN ECONOMY PERFORMANCEMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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Bolivia: Real GDP growth, 1986 - 2009 (p) (In percent)(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)Average 1985 20052006 (p)2007 (p)2008 (p)2009 (p)3,004,804,566,153,49MINISTERIO DE ECONOMA Y FINANZAS PBLICASDESPITE OF THE CRISIS, THE BOLIVIAN ECONOMY GROWSSelected Latin American countries: Real GDP growth, 2009 (p)(In percent)(p) PreliminarySource: Central banks and statistical institutes in each countryElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)

10MINISTERIO DE ECONOMA Y FINANZAS PBLICASTHE HIGHEST GDP GROWTH IN THE REGION

Bolivia: Real GDP composition by economic activity2000 - 2009 (p) (In millions of Bs.1990)(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 19th 2010 (Hrs. 09:33)11MINISTERIO DE ECONOMA Y FINANZAS PBLICAS17% 13% 11% 11%9%8%7%5%3%2%13%

Bolivia: GDP per capita, 1986 - 2009 (p) (In USD)Average 1986 - 20052005 (p)2006 (p)2007 (p)2008 (p)2009 (p)8711.0101.1821.3281.6511.683

12MINISTERIO DE ECONOMA Y FINANZAS PBLICAS(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)Bolivia: Real growth of households consumption and exports, 1991 - 2009 (p) (In percent)

13MINISTERIO DE ECONOMA Y FINANZAS PBLICAS(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)DOMESTIC DEMAND HAS SUSTAINED GROWTH

Bolivia: Gross fixed capital formation, 1988 - 2009 (p) (In percent of GDP)

14MINISTERIO DE ECONOMA Y FINANZAS PBLICAS(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)DOMESTIC DEMAND HAS SUSTAINED GROWTH

668.171Mar15MINISTERIO DE ECONOMA Y FINANZAS PBLICASSource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)SHARP DECLINE IN INFLATION Bolivia: Anual inflation rate, 1985 March 2010 (In percent)12-Month

Selected Latin American countries: 12-Month inflation rate January 2005 March 2010 (p)(In percent)(p) PreliminarySource: Central banks and statistical institutes in each countryElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Friday, april 16th 2010 (Hrs. 09:05)

16MINISTERIO DE ECONOMA Y FINANZAS PBLICASDECLINING INFLATION : MORE THAN IN NEIGHBORING COUNTRIES

Bolivia: Exports by economic activity1985 2009, Accumulated January February 2009 - 2010 (p)(In millions of USD)-23%44%18%43%Average 1985 - 20052006200720082009 (p)1.1384.0884.8226.9335.36617MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

Jan-Feb20%(p) PreliminaryNota: It does not include personal effects and re-exportsSource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 5 2010 (Hrs. 11:02)

Bolivia: Imports by economic use or destiny (CUODE)1990 2009, Accumulated January February 2009 - 2010 (p)(In millions of USD)-12%42%23%20%Average 1985 - 20052006200720082009 (p)1.4152.9263.5885.1004.46718MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

Jan-Feb1%(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 5 2010 (Hrs. 11:02)

Bolivia: Trade balance1990 2009, Accumulated January - February 2009 2010 (p)(In millions of USD)-50% 50%Average 1985 - 20052006200720082009-2011.3061.3021.95898619MINISTERIO DE ECONOMA Y FINANZAS PBLICAS196%Jan-Feb(p) PreliminaryNote: For the calculation, the exports include personal effects and re- exportsSource: National Statistic Institute (INE)Elaborated: Ministry of Economic and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 5 2010 (Hrs. 11:02)

Selected Latin American countries: Nominal exchange rate index, January 2003 - 13 April 2010 (Hrs. 17:35)(January 2003 = 100)(p) PreliminarySource: Bloomberg, Central Bank of Bolivia (BCB) on information from Bloomberg, Central Bank of UruguayElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 18:42)VenezuelaArgentina, Bolivia, Brasil, Chile, Colombia, Per and Uruguay 13Abr-1020MINISTERIO DE ECONOMA Y FINANZAS PBLICASEXCHANGE RATE STABILITY

Bolivia: Central Banks net international reserves 1976 March 2010 (p)(In millions of USD)20052006200720082009Mar-20101.7143.1785.3197.7228.5808.4472.1422.4031.464858(p) PreliminarySource: Central Bank of Bolivia (BCB)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 17:28)21MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

HIGH LEVEL OF INTERNATIONAL RESERVESLatin American countries: Net International Reserves2008 - 2009 (p)(In percent of GDP)

(p) PreliminarySource: Central banks in each countryElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 6 2010 (Hrs. 19:25)22MINISTERIO DE ECONOMA Y FINANZAS PBLICASTHE HIGHEST LEVEL OF INTERNATIONAL RESERVES IN THE REGION, IN TERMS OF GDP

Bolivia: Net foreign direct investment, 1985 - 2009 (p) (In millions of USD)Average 1985 2005: USD 296 millionsAverage 2006 2009: USD 393 millionsMINISTERIO DE ECONOMA Y FINANZAS PBLICAS23(p) PreliminarySource: Central Bank of Bolivia (BCB)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 17:28)POSITIVE FOREIGN DIRECT INVESTMENT IN 2009

Bolivia: Financial System deposits(1) December 2005 March 2010(In millions of USD)

24MINISTERIO DE ECONOMA Y FINANZAS PBLICAS24%20%28%23%37%36%4%20%27%48%4%23%(1) Note: Corresponds to the private sector depositsSource: Financial System Supervisory Authority (ASFI)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Wednesday, april 14 2010 (Hrs. 20:51)

Bolivia: Financial System loans and non performing loansDecember 2005 March 2010(In millions of USD)

25MINISTERIO DE ECONOMA Y FINANZAS PBLICAS16%14%19%10%Source: Financial System Supervisory Authority (ASFI)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Wednesday, april 14 2010 (Hrs. 20:51)Bolivia: Remonetization of the Financial System deposits and loans, 1995 March 2010(In percent)

26MINISTERIO DE ECONOMA Y FINANZAS PBLICASSHARP DECLINE IN DOLLARIZATION REMONETIZATION OF THE ECONOMY Source: Financial System Supervisory Authority (ASFI)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Wednesday, april 14 2010 (Hrs. 20:51)

Bolivia: Fiscal balance, 1970 March 22 2010 (p) (In percent of GDP)(p) PreliminarySource: Ministry of Economy and Public Finances, DGAPF, DGAT, and Central Bank of Bolivia (BCB)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 19:18)Average 1985 - 2005200620072008200922-Mar 2010- 5,0%+ 4,5%+ 1,7%+ 3,2%+ 0,1%+ 0,2% 22-Mar2,4%27MINISTERIO DE ECONOMA Y FINANZAS PBLICASFISCAL SURPLUS SINCE 2006: FOUR CONSECUTIVE YEARS

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40%34%14%Average 1987 2005: $us 497 millionsAverage 2006 2009: $us 1.169 millions7%Bolivia: Public investment, 1990 2009 (p) (In millons of USD)RECORD LEVEL IN PUBLIC INVESTMENT(p) PreliminarySource: Viceministry of Public Investment and External Financing (VIPFE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Wednesday, april 14 2010 (Hrs. 15:17)

MINISTERIO DE ECONOMA Y FINANZAS PBLICASBolivia: Public investment financing1990 2009 (p)(In percent)29DOMESTIC FINANCING OF PUBLIC INVESTMENT RISES (p) PreliminarySource: Viceministry of Public Investment and External Financing (VIPFE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Wednesday, april 14 2010 (Hrs. 15:17)

Bolivia: Tax revenues, 1990 - 2009 (p)(In millions of USD)(p) PreliminarySource: Ministry of Economy and Public Finances, VPT and National Taxes Service (SIN) y National Aduana Customs of Bolivia (ANB)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Tuesday, april 13 2010 (Hrs. 19:18)Average 1990 - 200520062007200820091.0182.6423.0844.0634.32430MINISTERIO DE ECONOMA Y FINANZAS PBLICASCONTINUOUS GROWTH OF TAX REVENUES

Bolivia: External public debt, 1993 March 2010 (p)(In percent of GDP)(p) PreliminaryNote: It does not incorporate FMI SDR allocations Source: Central Bank of Bolivia (BCB)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)31MINISTERIO DE ECONOMA Y FINANZAS PBLICAS MarDECLINING DEBT

Bolivia: Domestic public debt of the TGN, 1993 Marzo 2010 (p)(In percent of GDP)(p) PreliminarySource: Ministry of Economy and Public Finances, DGCPElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)32MINISTERIO DE ECONOMA Y FINANZAS PBLICAS Mar

DECLINING DEBT

Bolivia: Urban unemployment rate, 2000 2009 (p) (In percent)(p) Preliminary(e) EstimatedSource: National Statistic Institute (INE) and UDAPEElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)33MINISTERIO DE ECONOMA Y FINANZAS PBLICASLOWER UNEMPLOYMENT RATE

Selected Latin American countries: Unemployment rates2009 (p) (In percent)(p) Preliminary(e) EstimatedNote: Urban unemployment rate, except Chile and Venezuela national unemployment rate Source: National statistic institutes in each countryElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)34MINISTERIO DE ECONOMA Y FINANZAS PBLICASTHE LOWEST UNEMPLOYMENT RATE IN THE REGION

Bolivia: Moderate poverty rate, 1996 2009 (e) (In percent)

35MINISTERIO DE ECONOMA Y FINANZAS PBLICASPOVERTY REDUCTION(e) EstimatedSource: UDAPEElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)

Bolivia: Extreme poverty rate, 1996 - 2009 (e) (En percent)

36MINISTERIO DE ECONOMA Y FINANZAS PBLICAS(e) EstimatedSource: UDAPEElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 12 2010 (Hrs. 12:13)POVERTY REDUCTION A. INTERNATIONAL RECOGNITION TO THE BOLIVIAN ECONOMIC POLICIESMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Tuesday, april 13 2010 (Hrs. 19:18)INTERNATIONAL RECOGNITION TO THE BOLIVIAN ECONOMIC PERFORMANCEInternational Organisms

38MINISTERIO DE ECONOMA Y FINANZAS PBLICASFMI: Regional Economic Outlook: Western Hemisphere" presentation in Bolivia, and Article IV Consultation. The IMF described as prudent and wise the economic policy implemented in the country, for the fiscal stimulus applied in the crisis periodOctober, 2009October 2009 and February 2010November, 2009December, 2009BID: Emphasizes the positive growth in 2009, and the least impact of the crisis in the country, in relation to Latin America and the CaribbeanWorld Bank: Emphasizes the "appropriate macroeconomic management, and achieving the highest growth rate among countries in Latin AmericaCEPAL: Positioned to Bolivia as the fastest growing economy in 2009 and among the principals in 2010Credit Rating Agencies

39MINISTERIO DE ECONOMA Y FINANZAS PBLICASFitch Rating, raised the rating to "B" from "B-, with stable outlookSeptember, 2009October, 2009Moodys Investors Service, raised the rating to "B2" from "B3, with stable outlookThe sustained of macroeconomic stability and favourable public and external debt ratios, international reserves accumulation and fiscal saving, supported this ratingElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Tuesday, april 13 2010 (Hrs. 19:18)

INTERNATIONAL RECOGNITION TO THE BOLIVIAN ECONOMIC PERFORMANCE

III. PROJECTION INVESTMENT PROGRAM 2010 - 2015MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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PRIORITIZED INVESTMENTMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

41INVESTMENT PROJECTS BY ECONOMIC SECTOR(In millions of USD)(p) PreliminarySource: Ministry of Development PlanningElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 19th 2010 (Hrs. 10:35)

AchacachiVintoBermejo

El AltoCaracolloSan BuenaventuraSan JosMisicuniCbba.CorocoroHuanuniZincLitioGran ChacoRositasSanta CruzEl MutnRio GrandeCachuela EsperanzaEl BalaMiguillasVilla TunariChallapataCarrascoMiningLithium Uyuni (I)Iron Mutn (I)

Zinc Potos, Oruro (PreI)Huanuni (I)

Foundry Vinto (I)

Complex Corocoro (F)Hydrocarbons IndustrializationRefinement:Santa Cruz y Cochabamba (PreI)Ammonia/Urea: Cochabamba (PreI)Separation plant:Rio Grande (Santa Cruz) y Tarija (PreI)Pre-fabricated houses: Caracollo (I)Gas to liquids, GTL: Gran Chaco (San Alberto, Sbalo, Margarita) (PreI)Hydroelectric power plantsFor export: Cachuela Esperanza, El Bala y Rositas (PreI)Domestic Market: Miguillas, Misicuni y San Jos (PreI)Hydrocarbons, Mining and EnergyCARTONBOL (O)LACTEOSBOL (O)PAPELBOL (O)Public CompaniesECEBOL (I)

Bolivian Forest Enterprise (EFB) (PreI)Bolivian Almond Enterprise (EBA) (F)AZUCARBOL (I)

San Beunaventura Sugar Refinery (PreI)Pre-investment studies(PreI)Investment (I)Operation (O)PRIORITY: LAYING THE FOUNDATIONS OF INDUSTRIALIZATIONMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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Potencial petroleum areaTraditional areaPetroleum explorationPetroleum exploitationNew exploration areasMadidi, Chepite, ChispaniAguarage North and SouthCamatindi, San Telmo

Production7 wells in Margarita y Huacaya (Repsol)2 vertical aditional wells in Incahuasi (E&P)San Alberto PlantNorth Fields

THE CHALLENGE OF INDUSTRIALIZATION

MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

43Hydrocarbons: Exploration and production

RefinementSanta Cruz, CochabambaIndustrializationAmmonia/Urea: Cochabamba Provincia Gran Chaco (fields of San AlbertoSbalo, Margarita (GTL))Separation plantsSanta Cruz, TarijaRefinement and industrialization

MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

44HYDROCARBONS INVESTMENT(In millions of USD)THE CHALLENGE OF INDUSTRIALIZATION

Corocoro hydrometallurgical complex Inversin (50.000 MT fin copper/year)AUSMELT VINTO SmelterNew Huanunis mining refinery (3.000 TN/day)Zinc hydrometallurgical plants (Oruro / Potos)Iron El Mutn

Lithium carbonate pilot plant (40 MT/day) Large scale production of lithium carbonate (400.000 MT/year)Lithium Chloride / Metal Lithium Lithium battery industryElectric Car IndustryMiningMINISTERIO DE ECONOMA Y FINANZAS PBLICAS45THE CHALLENGE OF INDUSTRIALIZATION

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MiningMINISTERIO DE ECONOMA Y FINANZAS PBLICAS46LITHIUM INDUSTRIALIZATIONSALAR DE UYUNILITHIUM PROJECT PHASES

1.Pilot plant lithium carbonate installation2. Large scale production of lithium carbonate3.Industrial manufacture of high tech batteries based on lithium metalPROJECT DESCRIPTIONAccording the United States Geological Survey the lithium reserves in Bolivia are 5,4 million tonnes.Among the countries with the highest lithium demanding are United States, China, England, Germany and Japan. The price this metal fluctuates around $ 4.300 per tonne World Lithium Reserve Base(1), 2007(In millions of tons)

(1) That part of an identified reosurce that meets specified minimium physical and chemical criteria related to current mining and production practices, including those for grade, quality, thickness, and depht.Source: United States Geological Survey, Mineral Commodity Summaries 2007MINING INVESTMENT(In millions of USD)THE CHALLENGE OF INDUSTRIALIZATION

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PROJECTS FOR EXPORTHYDROELECTRIC PROJECTS(In millions of USD)

PROJECTS FOR DOMESTIC MARKETCachuela EsperanzaEl BalaRositasMiguillasMisicuniSan Jos

EnergyMINISTERIO DE ECONOMA Y FINANZAS PBLICAS47

THE CHALLENGE OF INDUSTRIALIZATION

PROJECTS FOR EXPORTPROJECT FOR DOMESTIC MARKETCachuela EsperanzaEl BalaRositasMiguillasMisicuniSan JosEnergyMINISTERIO DE ECONOMA Y FINANZAS PBLICAS48ELECTRICAL ENERGY INVESTMENT(In millions of USD)THE CHALLENGE OF INDUSTRIALIZATION

Existing roadsPerBrazilPuerto UstarizYacuibaGuayaramernCobijaLa PazVillazonParaguayChileS. I. MoxosVilla TunariGovernment Program

MINISTERIO DE ECONOMA Y FINANZAS PBLICASInterconnected RoadsROAD INTEGRATION49ROAD CONSTRUCTION INVESTMENT(In millions of USD)Chile

VIAL CORRIDORSCorridor 1. East - West (Bolivia, Brazil and Chile) 910 Km Corridor 2. North - South (Port Ustariz - Yacuiba) 128 Km Corridor 3. West - North (La Paz-Riberalta-Guayaramern-Cobija) 1.617 Km Corridor 4. West - South (La Paz - Bermejo-Villazn) 329 Km Corridor 5. East - West (Central-South) (Chile, Bolivia and Paraguay) 209 KmExisting roads

Government ProgramVilla Tunari San Ignacio de Moxos295 Km

PerBrazilParaguayChileMINISTERIO DE ECONOMA Y FINANZAS PBLICAS50Integrated RoadsROAD INTEGRATION

Oriental Railway network(Existing railway) Government Program West railway network (Interconnection zone) Ayquile WarnesProposed railway Government Program

MINISTERIO DE ECONOMA Y FINANZAS PBLICAS51TrainsRAYLWAY INTERCONNECTION

RAILWAY CONSTRUCTION INVESTMENT(In millions of USD)

Paved road (ESM, JSB and ABC)Puerto Surez Mutn Puerto BuschRailroadPuerto Surez Mutn Puerto BuschWaterwayMutn Ro Paraguay (Dionisio Foianini)WATERWAYMutn Puerto Busch: 110 KmPuerto Busch Puerto Nueva Palmira: 2.000 KmTOTAL:2.110 Km aprox.MINISTERIO DE ECONOMA Y FINANZAS PBLICAS52Mutn Puerto Busch waterwayBOLIVIA: CONNECTED TO THE ATLANTIC

WATERWAY MUTN PUERTO BUSCHInvestment amount (e): USD 450 millionsMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

WHEAT (Hectares)

Potential wheat productionRURAL DEVELOPMENT53RURAL DEVELOPMENT AND FOOD SECURITY INVESTMENT(In millions of USD)

53 IV. PRIVATE INVESTMENT ANDCONSTITUTION OF THE PLURINATIONAL STATE OF BOLIVIAMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

54MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

55INVESTMENT: CONSTITUTION OF THE PLURINATIONAL STATE OF BOLIVIAArticle 308.- The State recognizes, respects and protects private initiative, to contribute to the economic, social development and to strengths the country economic independency.It guarantees freedom of enterprise and the full exercise of the business activities, which will be regulated by law.Article 351.- The state will assume control and management on the exploration, exploitation, industrialization, transport and commercialization of the strategic natural resources through public cooperatives or communitarian, which entities could hire private firms and establish joint ventures. The state may subscribe contracts of association with legal entities, Bolivian or foreign, to the exploitation of natural resources. The economic profits must ensured to be reinvested in the country.Source: New Political Constitution of the StateElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Tuesday, april 13 2010 (Hrs. 19:18)MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

56Article 351.- The management and administration of natural resources will be conducted ensuring the control and social participation in the design of sectorial policies. In the management and administration may be established joint entities, with state of the and the society representation, and be will precautionary collective welfare.The private, Bolivian or foreign companies, will pay taxes and royalties when they intervene in the exploitation of the natural resources, and the collects to which they give place will not be refundable. The royalties for the utilization of the natural resources are a right and a compensation for his exploitation, and they will be regulated by the Constitution and the law.

INVESTMENT: CONSTITUTION OF THE PLURINATIONAL STATE OF BOLIVIASource: New Political Constitution of the StateElaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Lats update: Tuesday, april 13 2010 (Hrs. 19:18)Gracias

57MINISTERIO DE ECONOMA Y FINANZAS PBLICAS ANEXOSMINISTERIO DE ECONOMA Y FINANZAS PBLICAS

58Real GDP growth by economic activity..Diap. 59 A. REAL GDP GROWTH MINISTERIO DE ECONOMA Y FINANZAS PBLICAS

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60MINISTERIO DE ECONOMA Y FINANZAS PBLICASBolivia: Real GDP growth by economic activity, 2009 (p) (En porcentaje)GDP Growth: 3,4%INCIDENCE0,340,620,570,120,590,400,810,470,490,150,060,89(p) PreliminarySource: National Statistic Institute (INE)Elaborated: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Last update: Monday, april 19th 2010 (Hrs. 09:33)Hoja1Pobreza moderada20052009(e)VariationNational60.658.3-2.3Urban51.150.1-1.0Rural77.673.8-3.8Pobreza extrema20052009(e)VariacinBolivia38.231.9-6.3Urbana24.320.7-3.6Rural62.952.7-10.2

Hoja2

Hoja3

Hoja1Pobreza moderada20052009(e)VariacinBolivia60.658.3-2.3Urbana51.150.1-1.0Rural77.673.8-3.8Pobreza extrema20052009(e)VariationNational38.231.9-6.3Urban24.320.7-3.6Rural62.952.7-10.2

Hoja2

Hoja3

Lithium reserves(In million of tons)(%)United States0.43.7ArgentinaAustralia0.32.4Bolivia5.449.1Brazil0.98.3Canada0.43.3Chile3.027.3China1.110.0Portugal0.0Russia0.0Zimbawe0.00.2World total (rounded)11.0100(1): That part of an identified reosurce that meets specified minimium physical and chemical criteria related to current mining and production practices, including those for grade, quality, thickness, and depht.Source: United States Geological Survey, Mineral Commodity Summaries 2007Lithium reserve% PercentBolivia5.449.1Chile3.027.3China1.110.0Brazil0.98.3United States0.43.7Canada0.43.3Australia0.32.4Zimbawe0.00.2World total (rounded)11.0100.0

Hoja2

Hoja3

Lithium reservesWorld Lithium Reserve Base (1), 2007(In million of tons)(%)United States0.43.7ArgentinaAustralia0.32.4Bolivia5.449.1Brazil0.98.3Canada0.43.3Chile3.027.3China1.110.0Portugal0.0Russia0.0Zimbawe0.00.2World total (rounded)11.0100(1): That part of an identified reosurce that meets specified minimium physical and chemical criteria related to current mining and production practices, including those for grade, quality, thickness, and depht.Source: United States Geological Survey, Mineral Commodity Summaries 2007World Lithium Reserve Base (1), 2007Lithium reserve% PercentBolivia5.449.1Chile3.027.3China1.110.0Brazil0.98.3United States0.43.7Canada0.43.3Australia0.32.4Zimbawe0.00.2World total (rounded)11.0100.0

HidrocHidroelctricaMegaproyectos para la exportacinInstalled powerRevenue / year (e)Cachuela Esperanza (Beni)800359Rositas (Ro Grande,Santa Cruz)400146El Bala (La Paz north)1600619megaproyectos para el mercado internoInstalled power(MW)Revenue / year (e)Misicuni (Cochabamba)8010San Jos (Chapare)12025Miguillas (Inquisivi, La Paz)25095

PotenciaInstalada (MW)InversonIngresosTotal/aoAo Inicio de Operaciones(Millones de USD)Cachuela Esperanza (Beni)80015003592015Rositas (Ro Grande,Santa Cruz)4008001462018El Bala (norte de la Paz)160024006192022PotenciaInstalada (MW)InversonIngresosTotal/aoAo Inicio de Operaciones(Millones de USD)Misicuni (Cochabamba)80100102012San Jos (Chapare)120195252013Miguillas (Inquisivi, La Paz)250430952014

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Lithium reservesWorld Lithium Reserve Base (1), 2007(In million of tons)(%)United States0.43.7ArgentinaAustralia0.32.4Bolivia5.449.1Brazil0.98.3Canada0.43.3Chile3.027.3China1.110.0Portugal0.0Russia0.0Zimbawe0.00.2World total (rounded)11.0100(1): That part of an identified reosurce that meets specified minimium physical and chemical criteria related to current mining and production practices, including those for grade, quality, thickness, and depht.Source: United States Geological Survey, Mineral Commodity Summaries 2007World Lithium Reserve Base (1), 2007Lithium reserve% PercentBolivia5.449.1Chile3.027.3China1.110.0Brazil0.98.3United States0.43.7Canada0.43.3Australia0.32.4Zimbawe0.00.2World total (rounded)11.0100.0

HidrocHidroelctricaMegaproyectos para la exportacinInstalled power(MW)Revenue / year (e)Cachuela Esperanza (Beni)800359Rositas (Ro Grande,Santa Cruz)400146El Bala (North La Paz)1600619megaproyectos para el mercado internoInstalled powerRevenue / year (e)Misicuni (Cochabamba)8010San Jos (Chapare)12025Miguillas (Inquisivi, La Paz)25095

PotenciaInstalada (MW)InversonIngresosTotal/aoAo Inicio de Operaciones(Millones de USD)Cachuela Esperanza (Beni)80015003592015Rositas (Ro Grande,Santa Cruz)4008001462018El Bala (norte de la Paz)160024006192022PotenciaInstalada (MW)InversonIngresosTotal/aoAo Inicio de Operaciones(Millones de USD)Misicuni (Cochabamba)80100102012San Jos (Chapare)120195252013Miguillas (Inquisivi, La Paz)250430952014

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