WASHINGTON — The Inter-American Development Bank (IDB) Board of Executive Directors has approved a $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).
This operation is the third stage of a $400 million Conditional Credit Line for Investment Projects (CCLIP), 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), as well as improve the efficiency and operational flexibility of the transmission network in the Metropolitan Area of Asunción (AMA). It also includes strengthening ANDE’s commercial management through the modernization of its IT system.
Overall, the project will benefit 1.8 million customers of the SIN nationwide, improving service quality and customer care. More specifically, it will directly impact 1.2 million users in the AMA, ensuring a more reliable, flexible, and efficient electricity supply.
The project will support the acquisition of land and easement rights for transmission lines, the construction of the Emboscada substation in the metropolitan area, the reconfiguration of two existing 500kV transmission lines, and the interconnection of the new substation with the 220kV network through the construction of two 220kV transmission lines.
Additionally, it will promote the implementation of a modern, integrated IT system to optimize ANDE’s commercial management, along with institutional strengthening activities that include technical and operational training and strategic planning.
The $70 million loan has a repayment term of 24.5 years, a grace period of 6 years, an interest rate based on SOFR, and a local counterpart contribution of $16.4 million.
The operation is complemented by co-financing of $70 million from the European Investment Bank (EIB) and a non-reimbursable contribution of $11.5 million from the European Union’s Latin America and Caribbean Investment Facility (LACIF).
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en.
Simon,Luis Alejandro
Project Information
Paraguay and The IDB