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% 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. Acaray currently has a capacity of 200 MW.
To this end, the program will finance the design, manufacture, delivery and installation of the plant’s electrical and electromechanical 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 Yguazu 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 visitor’s 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 $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.