IDB supports program in Paraguay to modernize the Acaray hydroelectric power plant

Plan will extend the working life of the only wholly state-owned dam in Paraguay and boost its availability, reliability and generating capacity  

The Inter-American Development Bank (IDB) has approved $125 million in financing requested by Paraguay in support of a program to upgrade and modernize Acaray, the country's only 100 percent state-owned hydroelectric power plant, which was built with IDB support and is almost 50 years old.  

The Acaray Hydroelectric Power Plant Upgrade and Modernization Program will extend the facility's working life, boosting its availability, reliability and generating capacity. 

To this end, the program will finance the design, manufacture, delivery and installation of the plant's electrical and electro-mechanical infrastructure including two new turbines and generators, in addition to two transformers and the upgrading of the high-, medium-, and low-voltage substation. 

The plan also calls for financing improvements in the plant's civil engineering features, the addition of an integrated control system and upgrades to the waste collection facilities of the Acaray and Yguazú dams. These investments will help increase the dams' operational safety. 

This initiative also foresees investments to protect the plant's facilities and improvements to its operation and management,  including the construction of a visitors center and implementation of a gender and diversity strategy and action plan.  

This program is designed to boost the sustainability of Paraguay's electricity supply by ensuring the continuity of and an increase in renewable energy while at the same time limiting CO2 emissions. 

The plan will benefit all users of the country's interconnected electricity grid.

The National Electricity Administration will see an enhancement in its staff's technical training, especially with regard to the upgrading of hydroelectric power plants and how to operate one with cutting-edge technology which includes control and auscultation systems and the latest in digital panels and management tools. 

The $125 million IDB financing package is over 24 years with a six-and-a-half year grace period and an interest rate based on LIBOR. There is a local contribution of $20.2 million.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region. 

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Roberto Gabriel Aiello
IDB Project Team Leader