Bolivia Secures Up to $40 Million U.S. Funding for Development Projects

The government of Bolivia, led by President Rodrigo Paz, signed a Memorandum of Understanding with the U.S. Millennium Challenge Corporation (MCC) in Washington, D.C. on July 15‑16, 2026. The agreement, signed by Bolivian Foreign Minister Fernando Aramayo and MCC Deputy Vice‑President Martha L. Bowen, creates a framework for a Threshold Program that could provide Bolivia with up to $40 million in financing for sustainable development projects.

Over the coming months the two parties will jointly identify high‑impact, viable projects aimed at boosting economic growth and expanding opportunities for the Bolivian population. If technical milestones and approvals are met, the financing could range between $30 million and $40 million, targeting strategic sectors identified by the Bolivian government. The deal also marks a step toward normalising bilateral relations that have been limited since 2008, following a period of diplomatic strain.

The MCC is an independent U.S. agency that allocates aid based on performance‑based criteria. Bolivia was selected as an eligible country for the Threshold Program in December 2025, and the new MOU paves the way for future negotiations on a formal program agreement.