IDB Supports Expansion of Paraguay’s Electricity Transmission System

The Inter-American Development Bank (IDB) has approved a $260 million loan to support Paraguay’s National Development Plan through the expansion of the electricity transmission system, which will provide the country with a sustainable, reliable and efficient energy supply.

With this loan, Paraguay will boost the capacity of its National Interconnected System to satisfy short and medium term demand, particularly in the central and metropolitan systems. The program will also increase the electricity service’s reliability and efficiency by reducing transmission system losses and boosting women’s participation in leadership positions.

Paraguay’s electricity service currently serves 99.6 percent of the population, but points of power generation are very far from consumption hubs and the current transmission capacity is not enough to secure a reliable future supply given the forecasted short and medium term demand.

The loan is in line with Paraguay’s 2030 National Development Plan, which aims to enhance the population’s well-being by raising the quality of public services, particularly with the strategic focus on inclusive economic growth and the crosscutting area of competitiveness and innovation.

It is also consistent with Vision 2025, the IDB Group’s roadmap towards recovering sustainable and inclusive growth in Latin America and the Caribbean in the key areas of digitalization, climate change action, and gender and inclusion.

This is the second operation of a conditional credit line for investment projects for the “Sustainable Energy Investment Program in Paraguay,” and will be available over a 12-year period in the amount of $400 million.