TRANSMISSION LINE YACYRETA (PARAGUAY)

Promoter – Financial Intermediary

ADMINISTRACION NACIONAL DE ELECTRICIDAD

Location

• Paraguay

Description

The project concerns the construction of a 500kV high voltage transmission line between Villa Hayes and Yacyretá with an approximate length of 300km.

Objectives

The purpose of the project is to reinforce and upgrade the power transfer capability of Paraguay’s transmission network and its interconnection with neighboring countries. The project will help meet the growing electricity demand by supplying electricity from a renewable energy source, thus supporting the EU priority target of climate change mitigation.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 75 million

Total cost (Approximate amount)

EUR 223 million

Environmental aspects

The guidelines of the international finance institutions involved and the national legislation require for this project an environmental and social assessment (ESIA). A consultant is currently preparing the first phase of this assessment defining line sections where resettlement would be needed. The ESIA process and its results will be reviewed, as well as the promoter’s capacity to implement and monitor the required impact mitigation measures in line with the Bank’s guidelines.

Procurement

The procurement of the section to be financed by the Bank will be carried out in line with the requirements of the Bank’s Guide to Procurement.The rest of the contracts are expected be tendered internationally, in line with the rules of the IADB .The project’s procurement policy and strategy will be appraised.

Status

Signed - 11/12/2013