The Inter-American Development Bank today announced the approval of a US$69.5 million loan to Paraguay for the first phase of a two-phase power transmission program.
The National Electricity Administration (ANDE), Paraguay’s public power company, will be in charge of the program, that due to its long-term objectives will be developed in a sequential, two-phase approach.
ANDE’s strategy and the program’s objective is to meet growing demand for electricity in a sustainable manner by expanding and upgrading the transmission grids and reducing power loss levels. The program will help modernize the power sector and transform ANDE into a more modern and efficient public utility company.
The project is expected to make the productive sector more competitive and raise the standard of living of the population through the efficient use of the country’s large available electric power generation capacity.
This program follows the IDB’s Paraguay strategy, which focuses on boosting the competitiveness of the productive sector and gives priority to upgrading infrastructure while ensuring financial sustainability.
The loan will be for a 25-year term, with a four-year grace period, at an adjustable interest rate. Local counterpart funds for the first phase will total US$36.38 million.