Compelling evidence why current ochlocratic Bolivian gov shouldn’t continue!

Given current central Bolivian government engagement in the illegitimate re-re-election, I have no choice but to show three examples of their blunt incompetence and why they shouldn’t be voted again! never!!!

These are excerpts from Lidia Mamani’s article published in Pagina Siete:

15 of every 100 dollars are intended for fuel imports

According to official information, the total value of national imports last year was $8,172 million dollars. 15% was used to bring fuel to the market.

This is equivalent to say that 1.5 of every ten dollars are going abroad for the purchase of hydrocarbons to ensure domestic supply.

2013-07-30 08.27.45 amUntil May of this year the State spent more than $410 million. The import of diesel used $362 million dollars (see graphics).

According to data of the IBCE, imports of liquefied petroleum gas (LPG) between 2006 and 2012 increased more than 500%.

In 2006, in terms of value, purchases were $12,000 [yes, twelve thousand], but this figure grew to $64 million in 2012.

In recent days, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) said that LPG is imported only for winter, but IBCE and the National Institute of Statistics figures revealed that the State oil company bought the fuel throughout the year.

In different regions of the country the LPG supply was irregular; YPFB argued that demand grows in winter.

In Santa Cruz, the problem persisted over one month and in several areas of La Paz residents still cannot buy LPG.

These excerpts are also from Lidia Mamani’s report for Pagina Siete:

There is no gas for three new cement plants in Santa Cruz

2013-07-30 08.24.45 amSanta Cruz cement companies Itacamba, Soboce and Kaa-Iya still don’t have guaranteed the provision of natural gas. Some $500 million dollars will be invested in those three projects.

The Bolivian Cement Society (Soboce), in a statement, said that since February 2012, is requesting the provision of ten million cubic feet per day of natural gas to install a cement plant in Puerto Suarez.

“To date we have had no response; however, we trust in the authorities that they will comply with the Constitution, which indicates that it will prioritize the attention of the domestic market”, states Soboce.

On wednesday July 24, the Minister of Productive Development, Teresa Morales, told El Deber that there are hardly any gas for a cement project.

“In Santa Cruz, there is enough private investment to make more than one cement factory, but unfortunately the gas is limited and we can not supply more than to a project,” explained Morales Minister.

The other two ventures that require gas are Itacamba, which plans to invest $180 million in the expansion of its factory in Yacuses, Puerto Suárez, and the company Kaa-Iya, a mega-project of $160 million dollars will start in 2015, according to El Deber.

On July 9, the President of YPFB, Carlos Villegas, reported that gas production will reach 59 million cubic meters day (MMCD), but that will rise to 65 MMCD.

Of that total, 31.5 MMCD are for, on average, Brazil; 16 MMCD to Argentina; and ten MMCD to the internal market, which today claims 11 MMCD by winter. The country has, in the best of cases, a surplus of 7.5 MMCD to trade.

Hugo de la Fuente, an expert in hydrocarbons, explained that although there was an increase in the production of natural gas, the pipelines, which transport energy, are insufficient to meet the increase in demand in the East [Bolivian lowlands], for both the cement and small industries.

Follows excerpts from F. Rojas and H. Heredia report for El Deber:

Technical failures thwarted operations in Rio Grande

2013-07-30 08.38.43 amThe Government celebrated in advance the production of liquefied petroleum gas (LPG) and so far there are no results. Rio Grande liquids separation plant delays its operation due to technical failures. A coalescence filter (separator compressed air and gases) and the expander suffered problems during experimental tests that causes trouble to YPFB and delays its implementation.

Industry sources unveiled that, although these faults are normal, it becomes worrying as YPFB has commitments to export LPG to Paraguay. In addition to this constant announcements of President Evo Morales and the head of YPFB Carlos Villegas that the plant would start Yes or Yes to operate from July 28 [2013].

We [the reporters] searched for a third consecutive day and were unable to locate YPFB executives to have their version. The verbal request was made to their communications unit, but did not succeed.

Shielding YPFB’s from political power – Alvaro Rios – Former Minister of hydrocarbons

On May 1, 2013, emblematic date, again there was a new advertising with the media, that we will leave behind the import of LPG with the grandiose celebration of the implementation of the Rio Grande plant. Many knew that the plant was in the process of pre-commissioning, It wasn’t ready to produce continuously, that it will take a few weeks more and that we will continue importing LPG to supply the domestic market.

Over a week ago, there are deep shortages in several cities of the country, it was announced that the plant would go into production on July 28 and that the country would be completely self sustained and would begin exports. Problems of setting up continue and, as we have said, it is matter of several more days so that the plant could be producing LPG with stability.

Failures in a filter and the expander are two of the problems that are still been addressed and very probably that others will appear.

I think that YPFB should stop being a propaganda company and must advertise things when so they occur and not when the political power orders it is. For this reason, we will continue insisting on shielding YPFB’s from political power.

We’re well into 21st century and as such could not have the luxury to continue with cheap sorry demagogue, like the three main problems where the top star state-owned-company, demonstrates that ochlocracy is rampant in current government.

It is absurd to see that there are opportunities to generate more employment with the three cement factories, instead the incompetence of the failed public policies of current government is present.

More than seven years of failures, incompetence and destruction of Bolivian civility… enough! lets not vote for the illegitimate re-re-election. We must stop the perpetuation in power of current lousy government!

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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