Government seeks bids for engineering study of propylene, polypropylene plant in South Bolivia

03-May-16

The government is seeking bids on a basic engineering study for a propylene and polypropylene plant that will be built in southern Bolivia in 2017, said the CEO of state-owned oil company YPFB, Guillermo Acha. The engineering studies will be used to build the US$2.2 bln plant, whose construction will be financed entirely by the government. The propylene and polypropylene plant will be built in Yacuiba, a city on the border with Argentina, with groundbreaking expected in H2-2017. The petrochemical plant is projected to commence operations in late 2021. Finance for the mega-project was secured through a credit agreement signed on April 13 with the Central Bank of Bolivia for US$1.8 bln, to be paid back over 25 years at 1% annual interest. The remaining US$400 mln will be contributed by the state oil firm YPFB.