The Inter-American Development Bank (IDB) is to provide $125 million in financing for a project to modernize the Acaray hydroelectric power plant in Paraguay.
The Acaray plant, the country's only 100% state-owned hydroelectric power plant, was built with IDB support and is almost 50 years old. The upgrade and modernization program will extend the facility's working life, boosting its availability, reliability and generating capacity.
The program will finance the design, manufacture, delivery and installation of the plant's electrical and electro-mechanical 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 Yguazú 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 visitors center and implementation of a gender and diversity strategy and action plan.
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.