Terrazas Sandoval was ordained a priest in 1962. He earned a degree in social ministry from EMACAS University, France.[3] In Bolivia, he was superior of the Vallegrande Redemptorist community before being appointed Auxiliary of La Paz in 1978. He was later transferred to Oruro in 1982. He chaired the Episcopal Commission on the Laity, Youth and Vocations, was a member of CELAM's Commission on the Laity, and was elected President of the Bolivian Episcopal Conference on four occasions.[3]
On May 25, 2013, Pope Francis accepted the resignation he submitted when he turned 75. He was immediately succeeded as Archbishop of Santa Cruz de la Sierra by his Coadjutor Archbishop, Sergio Alfredo Gualberti Calandrina.[5]
Terrazas died aged 79 after several complications in his health.[6]