Uruguay’s Ingener to build Paraguay’s high voltage power line with US$85 million investment
RIO DE JANEIRO, BRAZIL – Ingener, Uruguay’s largest electrical infrastructure construction company, signed a contract with the National Electricity Administration (ANDE) to build and interconnect Paraguay’s high voltage electrical system. The agreements to begin construction of the 500 KV Valenzuela Substation with an investment of US$85 million were signed in the presence of Paraguay’s president Mario Abdo Benítez.
This is a major development that will enable Paraguay, for the first time in its history, to fully benefit from the energy generated by the Itaipú Hydroelectric Power Plant, built on the Paraná River, on the border with Brazil.
Ten companies took part in the bidding process in Asunción for an estimated amount of US$103 million. The work was awarded to the San José Consortium, comprising Uruguayan companies Ingener, Saceem and Paraguayan Concret Mix, for an investment of US$85 million (27% below the estimated cost). Funding will be provided through a loan from the Fondo Financiero para el Desarrollo de la Cuenca del Plata (FONPLATA) – Development Bank.
REGIONAL INTERCONNECTION
The project is part of Paraguay’s 2021-2030 Transmission Master Plan, which includes several works considered strategic to ensure Paraguay’s energy sovereignty. Specifically, the project consists of the construction of a transformation substation in the town of Valenzuela (department of Cordillera) and of the power transmission lines of the Yguazú Substation, interconnected with Itaipú Binacional’s Right Bank Substation.
During the event, attended by president Mario Abdo Benítez, the head of state-owned ANDE Félix Sosa said: “Mr. President, one of the goals of your government’s strategic planning for the electricity sector is energy sovereignty. And to this end, we need to execute all the required works to draw 100% of the power we are entitled to from Itaipú Binacional. In addition, we need to execute all the transmission and distribution works to take this energy with quality and reliability to every Paraguayan home.”
Representing the companies awarded the contract to execute the works, Rubén Darío Bogarín said: “Today is a historic day for us, because we are assuming a major, important commitment for the Republic, for its development and for its people. Today we signed a contract that will boost a whole area, a whole region, a 500 kV substation that we will execute with great responsibility within the time and form required. As a consortium formed with Uruguayan companies joining us in this project.”
“We are proud of this new step in Ingener’s growth, which has gone from being the largest construction company in energy infrastructure in Uruguay to consolidate itself as a significant player in the regional market, building wind farms, solar parks, thermal generation plants and high voltage substations in Argentina, Bolivia and now also building for ANDE Paraguay’s great challenge in the electricity sector,” said Ingener’s country manager in Argentina Alejandro Hunko.
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
More: Latin America news in English, every day from The Rio Times.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error