Brazil and Bolivia sign memorandum for fertilizer production

The agreement provides for the construction of factories and the exploitation of natural gas from the neighboring country's reserves

Published in Feb 01, 2024 01:43 PM

Brazil and Bolivia signed a memorandum of understanding on Tuesday (30 January) at the Itamaraty Palace, with the objective of increasing fertilizer production in the two countries. The agreement includes, among other actions, studies to build nitrogen fertilizer factories in both countries.

Bolivia has large reserves of natural gas, which is essential for the production of nitrogen, as well as minerals used in other types of nutrients, but it lacks the training and resources to develop its supply chains - a lack that the memorandum tries to reduce by providing for technical cooperation, an industrial development plan and an investment attraction program, among other measures.

The document was signed on the Brazilian side by Ministers Geraldo Alckmin, of Development, Industry, Trade and Services (MDIC), Carlos Fávaro, of Agriculture and Livestock (MAPA), and Alexandre Silveira, of Mines and Energy (MME). On the Bolivian side, Ministers Franklin Ortiz, of Hydrocarbons and Energy (MHE), and Remmy Gonzáles Atila, of Rural Development and Lands, signed.

"We signed an important memorandum of understanding about fertilizers with Bolivia, the newest member of Mercosur. We're going to reduce our external dependence on essential inputs for our field and strengthen our regional supply chains, making our agribusiness even more competitive," said the vice-president.

Among the points agreed highlights strategic cooperation for technical, economic and environmental feasibility studies to attract investment in projects with development potential in Três Lagoas (MS) and Cuiabá (MT), in Brazil; and in Puerto Quijarro (Santa Cruz), Uyuni (Potosí), Copaisa (Oruro) and Santivañez (Cochabamba), in Bolivia.

"Bolivia plays an important role as a supplier of natural gas to the Brazilian market, which we want to expand with new projects on energy integration and in the areas of fertilizers and biofuels," said Foreign Affairs Minister Mauro Vieira, who hosted the meeting.

The agreement also provides for geological mapping and mineral research, as well as a set of measures to expand and facilitate trade between the two countries in the area of fertilizers and inputs for plant nutrition.

The implementation of the memorandum will be conducted by a joint working group, made up of representatives from the technical areas, which will be responsible for elaborating a strategic cooperation plan.