On Thursday, Bolivia's Economy Minister Marcelo Montenegro announced the creation of the Public Investment Competitive Fund (FOCIPP) through a budget allocation of US$217.4 million.
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"We believe that these resources will boost regional public investment through innovative projects," Montenegro said, and explained that these resources will be allocated to the National Fund for Productive and Social Investment (FPS).
The resources will finance initiatives of municipal governments and Indigenous communities, especially those focused on import substitution and productive infrastructure and projects.
The creation of this new fund is part of a strategy to solve the economic problems that Bolivia is experiencing. In particular, it aims to rebuild and reactivate the domestic demand.
The tweet reads, "Bolivia proposes strengthening CELAC to replace the OAS"
The FOCIPP funding will be distributed among four categories of subnational governments established according to ranges of population sizes.
Approximately US$51 million will be allocated to municipalities with up to 5,000 inhabitants; US$87 million will be destined for the needs of municipalities with up to 14,999 inhabitants; and US$51 million will be directed towards municipalities with up to 49,999 inhabitants. Finally, municipalities with over 50,000 inhabitants will be able to access about US$29 million.
The FOCIPP administration will be in charge of the FPS, thus the operational aspects will depend on the regulations it will approve.