The Consejo Nacional de la Producción y Transporte Independiente de Energía Eléctrica (“CONAPTIE”) announced on July 6, 2016 the call for bids for the construction of a small hydroelectric power plant (“PCH”) on the Ypané River. In a first instance, the Bidding Terms and Conditions will be submitted for consultation to interested parties, who will have the opportunity to make observations within a period of 15 days, until next August 2, in order to incorporate all aspects to favor the greatest possible participation. The call is made in order to continue taking advantage of the great hydroelectric potential of Paraguay, in anticipation of the growth of the energy demand by an average of 10% per year, and in special attention to the existing energy deficit in the region.

This project is the result of a private initiative presented years ago and is framed within the framework of Law No. 3009/2006 “OF THE INDEPENDENT PRODUCTION AND TRANSPORT OF ELECTRIC ENERGY (PTIEE)”, which foresees that private investors under Risk Sharing contracts with the National Electricity Administration (“ANDE”) build and operate power generation plants - among other sources and modalities - from the exploitation of hydraulic resources, foreseeing the reversion of the works and facilities to the Paraguayan State in a term of up to thirty years.

CONAPTIE also decided to call a public tender for the purchase of electricity, probably from a solar-wind matrix, to supply the city of Bahía Negra (Department of Alto Paraguay), which is currently powered by a fossil fuel plant.

The call constitutes a historic decision, since these will be the first generation projects to be executed under the aforementioned regulations, taking into account that all the hydroelectric projects that generate energy for the country have been executed by the State in a binational manner (Itaipu with Brazil and Yacyreta with Argentina) or through ANDE (Acaray hydroelectric plant).

Vouga Abogados has strongly supported for years the promotion of renewable energies in the country and the promotion of projects under the legal framework of the aforementioned Law 3009/2006, having actively participated in the Renewable and Sustainable Energy Roundtable of REDIEX (a public-private instance of the Ministry of Industry and Commerce for the promotion of non-traditional investments and exports), from which an initiative of the “Renewable Energy Plan of Paraguay”, a Senate Bill for the promotion of renewable energies and the decisive initial impulse for the present project that today finally becomes a reality, arose.

In the attached file you can find the text of Law 3009/2006 and, upon request, we can send you more information about the hydropower potential of Paraguay.