IIC Signs A US$4 Million Loan Agreement With Refinería Oro Negro S.A., A Bolivian Company


Washington, D.C. – On May 20, 2004, the Inter-American Investment Corporation (IIC) signed a US$4 million loan agreement with Refinería Oro Negro S.A. to increase this company’s total crude oil processing capacity and its diesel production, and to extend its product line to include gasoline and premium gasoline. To this end, a new crude processing unit and a catalytic reforming unit will be installed. The project is located in Tundy, 40 km from the city of Santa Cruz, Bolivia.

The signing ceremony took place at IIC’s Headquarters in Washington, D.C. The loan agreement was signed by Messrs. Pedro Paz Soldán, Executive Director, and Gonzalo Dorado, Executive President, for Refinería Oro Negro S.A. and by Mr. Jacques Rogozinski, General Manager of the IIC. Also present in the ceremony were Messrs. Orlando Ferreira, IIC Executive Director and Jorge Crespo, IDB Alternate Executive Director.

Diesel import substitution under the project will be at a rate of US$13,7 per dollar invested in the project during a seven-year span. The estimated internal rate of return for the project is 66,7%. The Corporation will be supporting a company all of whose shareholders are local, thus furthering the development of the hydrocarbon sector in Bolivia.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Jacques Rogozinski

Telephone: (202) 623-3901

Email: sylviasz@iadb.org