La Paz, May 7 (RHC)-- The Bolivian government has signed a contract with German engineering firm Siemens in order to expand the generating capacity of a thermoelectric plant from 200 to 480 megawatts of power.

Cooperating with Siemens, the Bolivian government will build two combined-cycle production plants to increase the power output of four other plants.

But during his remarks, President Morales promised the deal would not undermine Bolivian sovereignty. “This thermoelectric project is ours, it belongs to Bolivia, not to Siemens," he said.

Since his election in 2005, President Morales has greatly increased government control over the nation’s natural resources, and by the year 2020 the country expects to produce some 2,500 megawatts of energy. This figure is expected to increase by 2025, when between 9,000 and 10,000 megawatts are expected to to be generated for export, chiefly to the Brazilian market.

Bolivia currently has a production capacity of some 1,900 megawatts, while peak demand can be as much as 1,300 megawatts, according to figures from the Bolivian Ministry of Energy.