Iran and Venezuela have reached an agreement to construct two cement factories in the South American state of Bolivia.
The agreement was made through a letter of understanding signed by Iran’s Charge D’affaires, Hojjatollah Soltani, and Venezuelan Ambassador to Bolivia, Julio Montes Prado, in La Paz.
Bolivian President Evo Morales was also present in the inking ceremony.
Bolivian deputy minister for small and medium business, Eduardo Peinado, told reporters that, based on the agreement, Iran and Venezuela have agreed to loan Bolivia 230 million dollars to build a state cement company for the construction of roads and houses.
Peinado said the state company to be formed would use the credit to build two plants in the southern Andean cities of Oruru and Potosi that would produce a total 700,000 tons of cement per year, about 40 percent of the country’s current needs.