However, it recognizes that given the technological leaps, it is important to constantly update regulations and public policies to further support the management of natural resources and decarbonization.

ISSUE 107 | 2022

Elizabeth Riva Álvarez

Technological advances and the energy sector´s maturity demand regulations and public policies updates to have a better adaptability in new contexts, considering that tackling climate change is often not only a matter of investment, but also a matter of natural resources management in order to contribute in the decarbonization of systems, this is the opinion of Julia Johannsen, representative for Bolivia of the Inter-American Development Bank (IDB).

Bolivia enjoys a good energy institutionalization that allows the execution of important projects for the development of the country. “We believe that the regulations are in place, that the institutional framework is in place, so, we have several examples of successful execution projects, at least in terms of external resources that are the responsibility of the IDB,” said the executive of the financial institution.

Regarding to the regulations updating process, this international organization presents itself as a “strategic partner” for Bolivia and all the countries within Latin America and the Caribbean, where the IDB provides, technical assistance, advice and support to its partners. “The countries, the ministries, the executing units of the projects and lastly, the public policy makers, benefit not only with resources, but also with the technical support that we provide”, she assured.

Julia Johannsen emphasized that a relationship of mutual respect with its partners allows the IDB to support efforts towards modernizing regulations and advancing the countries’ institutions.

“The support that the IDB provides is focused on a combination of financing, technical assistance and through this, foster institutional strengthening, both in the sense of supporting the efficient execution and implementation of resources that we provide to the country, as well as in the development of regulations and policies updates that are in tune with the context”, she said.

PILLARS OF DEVELOPMENT

The economy reconstruction and the productivity boost (after the harsh period of COVID 19 pandemic), the diversification of production, and inclusive and sustainable social development, are three priority axes in Bolivia’s development strategy for the period 2022-2025. The document was recently approved together with the Inter-American Development Bank (IDB), which finances important projects for the fulfillment of the previously stated objectives.

“The IDB in Bolivia has been a key partner for more than six decades, and our strategy approach represents a roadmap that allows us to continue supporting projects facing challenges that are identified in the Economy and Social Development Plan of the country”, said the representative of the Inter-American Development Bank for Bolivia, during her participation in the colloquium organized by ENERGÍABolivia magazine.

The executive explained that the three priority axes, allow the financial institution to continue supporting the country in areas of proven track record and impact, such as energy, water and sanitation, health, employment, rural development, tourism and transportation, among other aspects, and, in addition, provide financial technical support also in emerging areas. She additionally said that gender and diversity approach, climate change, environmental sustainability and institutional capacity as well as the rule of law, are incorporated as transversal axes to all the main pillars.

ENERGY TRANSITION

Bolivia must take advantage of its leadership in hydrocarbons exports to foster social and economy development, while enhancing its capabilities to fully adopt sustainable energy in a timely manner, according to IDB energy expert Edwin Malagón, who also specified that the country is working on achieving interconnections with neighboring countries for electricity exports.

“The strategy must be taking advantage of all the benefits that come from being a leader in hydrocarbon exports but, at the same time, work on the development, knowledge and implementation of renewable energies, so when the time comes, we can make that leap and consolidate the energy transition. Even technologies such as hydrogen have to be considered as long-term alternatives,” he said.

Malagón considers that Bolivia is a privileged country as it has both renewable and non-renewable resources, which facilitates the energy transition process. “But, of course, these actions are coupled by a series of measures that include the incorporation of new technologies and also actions such as providing a better supply and increasing coverage for the country’s inhabitants.”

The country´s Economy and Social Development Plan explicitly establishes the designed policies that lead to the energy transition in the long term and establishes concrete actions, for example, to increase the adoption of renewable energies in the energy matrix, in 2006 the adoption was of 37% and plans to reach 75% in 2025.

…the IDB’s work is comprehensive, with measures that directly support the development of renewable energies and projects that effectively reduce emissions…”