The geographical zones in Bolivia are tropical and subtropical lowlands, upland valleys and hilly areas and the Altiplano situated at 4,000 m above sea level.
The region Cochabamba extends over upland valleys as well as over tropical lowlands. It consists of 14 administrative regions. Including the districts of Carrasco and Chapare located in the tropical regions it comprises an area of 55,631 m˛ in total. According to the 1976 census Cochabamba Valley, lying at an altitude of between 2,300 and 3,700 m, has a population of 730,358. The province capital, Cochabamba (location of the project, 2,553 m above sea level), with 377,000 inhabitants is one of the economic and commercial centres of the country. The Cochabamba Valley is divided up into the districts Valle Bajo, Valle Central, Valle Alto and "Cabecera de Valle". The mean annual temperature lies at around 17.7°C with night frost occurring in winter. The mean annual precipitation amounts to around 477 mm. Climatic conditions allow arable farming between November and May.
The dissemination region Cochabamba Tropical is approx. 280 km northeast of the city of Cochabamba and comprises 2,500 km˛. The mean annual temperature is about 24.7°C with temperatures of over 30°C being possible during the day. The south wind "Surazo" can however make temperatures fall to less than 10°C. The mean annual precipitation depending on the area is between 3,500 mm and 6,000 mm. The population amounted to approx. 350,000 in 1989 and lives mainly in scattered settlements, chiefly along the road to Santa Cruz. The region is a migration area and has been developed for approx. 20 years mainly by migrants from the highlands of the Andes. The population development is strongly dependent on the development of coca cultivation. A substantial share of the national coca production which made a contribution of 600 million US$ to the GNP in 1990 comes from here. With the decline in the price of coca and restrictions in its cultivation in 1990 the population promptly fell to approx. 91,100.
Demographically the population comprises approx. 30% Mestizas, 25% Quechuas, 17% Aymarás, 12% Europeans (and Americans) and "others".
Bolivia is considered to be one of the most politically and economically unstable countries in South America. The economy of Bolivia grew between 1987 and 1990 by approx. 2.5% annually. However this growth could not close the gap in the economic structure of Bolivia which separates the Indio population from the white population, i.e. the urban from the rural populations, and which makes the informal sector (approx. 60% of inhabitants working in cities are active here), superior to the formal sector (mainly from the export of coca) also under the aspect of added value.
Agriculture is ascribed - now that mining has lost its key position - with a substantial potential for development, in particular if a South American economic area is to be formed. Especially the Amazonas region around Santa Cruz is seen as the central agroindustrial growth area. In 1990 cattle to the value of 50 million US dollars were exported from this region. Where energy is concerned, Bolivia is independent of imports. Marketing of oil and gas energy resources on the domestic market brought 452 million US dollars in 1989. This year, the revenue from energy imports amounted to US $ 214 million. This corresponds to 26% of the total amount of exports.