Bolivia to review and potentially close unprofitable state enterprises

The government of President Rodrigo Paz has announced a comprehensive review of Bolivia's state-owned enterprises to determine which entities will continue, require reorganization, or face dissolution and liquidation. The administration aims to address significant financial losses, noting that approximately $7 billion was previously allocated to projects that failed to achieve import substitution goals.

The Technical Office for the Strengthening of Public Enterprise (OFEP) has identified 20 bankrupt entities among 67 state companies under evaluation. Currently, only three companies—Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), the Corporación Minera de Bolivia (COMIBOL), and the Empresa Nacional de Electricidad (ENDE)—are reported to be profitable.

To prevent the closure of some deficit-running companies, the government is considering public-private partnerships (PPP) to incorporate private capital and expertise. President Paz criticized the management of these enterprises by previous administrations, alleging they were used for political purposes. A new decree is being prepared to establish formal mechanisms for the reorganization or liquidation of public companies that do not meet sustainability criteria.