The Executive President a.i. of the Development Bank, Luciana Botafogo, and the President of the National Energy Administration of Paraguay (ANDE), Félix Sosa, signed a loan agreement for the implementation of the project “Construction of the 220 kV transmission line to Villa Hayes–Villa Real–Pozo Colorado–Loma Plata and the Pozo Colorado 220 kV Substation in the Western Region”, in the Paraguayan Bajo Chaco.

Since 2018, FONPLATA has been supporting ANDE to reach its objectives. The first project approved, and currently under execution, is the “Construction of a Transformer Substation and Power Transmission Lines in the town of Valenzuela.”

The signing of the agreement took place at the Bank's headquarters in Santa Cruz de la Sierra, Bolivia. During the event, Botafogo thanked ANDE for the trust placed in FONPLATA, highlighted the Administration’s commitment to the development of the Paraguayan people, and added that the Bank is willing to support this master plan, as access to electricity is essential to improve the quality of life.

For his part, Sosa stated that currently more than 99% of the Paraguayan population has access to electricity and emphasized that FONPLATA's support involves significant works to continue and complete the expansion and strengthen the transmission infrastructure of the national power grid. Additionally, he stressed that the Valenzuela Substation will be the most important in Paraguay and that the loan for the Paraguayan Chaco region is critical for the productive and sustainable development of irrigated agriculture.

The new project involves a total investment of USD 126 million, of which FONPLATA funds USD 45 million; the rest will come from local contribution. The loan is included in the Development Bank's Green Funding Line. With large-scale infrastructure works, the project aims at increasing the capacity of the Northern and Western Transmission System and part of the Paraguayan Bajo Chaco Distribution System. Specifically, it includes the construction of the 220 kV transmission line, the Pozo Colorado Substation, and four new feeders, to accompany the growth of the projected demand in the area and guarantee a reliable and safe provision of electricity, contributing to the socioeconomic development of the population.

The National Energy Administration of Paraguay (ANDE) is an autonomous entity whose mission is to meet the country's power supply needs and to operate in the regional power sector with social and environmental responsibility, and excellence in administration and service so as to contribute to the development of Paraguay and the welfare of its population.

03/10/2023