German industrial group Siemens has signed a long-term memorandum of understanding (MoU) with Bolivia worth over $1.1b, reported Reuters.

Under the terms of the agreement, Siemens will supply gas turbine combined cycle equipment to expand three thermal power plants owned by state utility Ende Andina.

According to Penn Energy the MoU was signed with the Hydrocarbon and Energy Ministry of Bolivia and is far-reaching agreement on energy cooperation and future collaboration in the field of products and services for the oil & gas industry.

The MoU was signed in the presence of the President of Bolivia, Evo Morales, during his visit to Germany.

The agreement is part of Bolivia’s 2025 Patriotic Agenda. The country has the second-largest reserves of natural gas in South America.

“With this major agreement we further strengthen the energy partnership between Bolivia and Siemens,” said Willi Meixner, CEO of Siemens’ Division Power and Gas.

“Our products and solutions will help our partner ENDE to significantly increase the efficiency in electricity production and support the future plans of energy export. By cooperating in the fields of renewable energy as well as transmission and distribution, we are supporting the country´s ongoing efforts to improve access to electricity of its population,” Meixner added.