The Executive Board of the Inter-American Development Bank (IDB) approved a USD 70 million loan under the Specific Investment Loan (ESP) modality to support the expansion of Paraguay’s high-voltage transmission system and strengthen the institutional capacity of the National Electricity Administration (ANDE), the state-owned utility.
This operation represents the third phase of a Conditional Credit Line for Investment Projects (CCLIP) totaling USD 400 million, approved in May 2020 to finance the country’s Sustainable Energy Investment Program.
The project aims to increase the reliability and maximum transmission capacity of the National Interconnected System (SIN), while improving the efficiency and operational flexibility of the transmission network in the Asunción Metropolitan Area (AMA). It also includes enhancements to ANDE’s commercial management platform through the modernization of its IT systems.
Overall, the initiative is expected to benefit 1.8 million customers connected to the SIN across the country by improving service quality and customer attention. More specifically, it will directly impact 1.2 million users in the Asunción Metropolitan Area by ensuring a more reliable and efficient electricity supply.
The project will support the acquisition of land and transmission rights-of-way, the construction of the Emboscada substation in the metropolitan area, the reconfiguration of two existing 500 kV transmission lines, and the interconnection of the new substation to the 220 kV grid through the construction of two 220 kV transmission lines.
In addition, it will promote the deployment of a modern, integrated IT system to optimize ANDE’s commercial operations, along with institutional strengthening measures such as technical and operational training and strategic planning activities.
The USD 70 million loan features a 24.5-year amortization period, a 6-year grace period, a SOFR-based interest rate, and includes USD 16.4 million in local counterpart funding.
The operation is complemented by USD 70 million in co-financing from the European Investment Bank (EIB) and a USD 11.5 million non-reimbursable contribution from the Latin America and Caribbean Investment Facility (LACIF) of the European Union.
