Transierra S.A., headquartered in Santa Cruz, Bolivia, is a private company established on November 8, 2000 under Bolivian law in order to increase transportation capacity for the gas extracted from the San Alberto and San Antonio gas fields. On December 14, 2001, the Superintendency of Hydrocarbons granted the Company a non-exclusive concession for the construction and 40-year operation of a new 432 km feeder pipeline from Yacuiba, province of Tarija, to Rio Grande, province of Santa Cruz de la Sierra. Transierra now operates the Gasyrg pipeline, which began operating in April of 2003. The capacity of the pipeline system was increased from initially 11 MMcmd to 17 MMcmd in January 2004 through the completion of construction of a first compressor station in Villamontes. Transierra is owned 44.5% by Empresa Petrolera Andina S.A., a 50% owned affiliated company of Repsol YPF S.A., 44.5% by Petrobrás Bolivia S.A., a wholly owned affiliated company of Petróleo Brasileiro S.A., and 11% by Total E & P Bolivie S.A. – Sucursal Bolivia, a Bolivian branch of a company wholly owned by Total S.A. These shareholders of Transierra are also involved as producers in the joint venture developments of the San Alberto and San Antonio gas fields that supply the gas transported by the Gasyrg pipeline.

The estimated project cost is $409 million. The proposed IFC investment consists of an A loan for IFC’s own account in the amount of $50 million and a syndicated B loan in the amount of $100 million.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The Gasyrg pipeline is 432 kilometer in length, 32 inches in diameter and is buried along its entire length. It begins in Yacuiba, province of Tarija near the Argentine and Paraguayan border, transporting gas north from the San Antonio and San Alberto gas fields to the Rio Grande, province of Santa Cruz de la Sierra, where it feeds into the Gasbol pipeline to Brazil. The system is operated remotely from Santa Cruz de la Sierra, the headquarters of Transierra S.A.

The project has two important development impacts. First, it will support more investment in Bolivia’s most active economic sector, i.e., the monetization of hydrocarbons and help increase the utilization of goods and services of local suppliers to that sector. Second, the project facilitates the sale of Bolivian gas providing an important source of revenues to the country through royalties and taxes. Facilitating the immediate monetization of gas is important, since the other monetization options are still being discussed and developed. IFC plays a key role in this project particularly with respect to providing long-term financing that is otherwise unavailable, demonstrating willingness to commit its own resources as well as mobilizing B loans, and providing environmental and social additionality.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental /social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed.

- The company’s capacity to review and manage projects in accordance with World Bank groups environmental and social safeguard policies;
- Liquid and solid waste disposal and management;
- Contamination of the site(s) from past or current operations on or off-site;
- Natural habitats;
- Occupational health and safety including fire protection and emergency response;
- Public consultation and disclosure programs;
- Indigenous peoples development plans;
- Compensation and land use for easements and right-of-way (ROW); and
- Community relations and development programs.
Location of environmental documents in locally affected community
Transierra S.A. Carretera Antigua a Cochabamba – Km 2 ½ Santa Cruz de la Sierra, Bolivia www.transierra.com.bo Phone (591-3) 358 6361, (591-3) 800-12-1000 Fax (591-3) 358 6373