The National Council of Production and Independent Transportation of Electric Energy (known in Spanish by the acronym CONAPTIE), has announced on July 6th, 2016, that it will call for bids on the construction of a Small Hydroelectric Plant (SHP), on the Ypané River. In its first instance, the Bidding Terms and Conditions will be subject of consultations from those interested in bidding, who will have the opportunity to make observations in a 15-day time span (up until August 2nd), with the objective of bringing all aspects of the process together to encourage the biggest possible participation. This call is made with the ultimate goal of continuing to take advantage of the great hydroelectric potential of Paraguay, taking into consideration that the energetic demand grows by 10% annually, and in particular, to the extensive energetic deficit that exists in the region.

The present project is the result on a private initiative presented two years ago, and it is framed under Law No. 3009/2006 “OF PRODUCTION AND INDEPENDENT TRANSPORTATION OF ELECTRIC ENERGY” (known in Spanish by the acronym PTIEE), which states that investors working with the National Electricity Administration (known in Spanish by the acronym ANDE), under Shared Risk contracts build and operate electric generation centrals (amidst other sources and methods), by the exploitation of hydraulic resources, foreseeing the reversal of the works and installations to the Paraguayan State within 30 years.

CONAPTIE has also decided to call for a public bidding for the purchase of electric energy, probably starting from a solar-eolic matrix, to supply the city of Bahía Negra (Department of Alto Paraguay), which today is being done from a fossil fuel reservoir.

The tender constitutes a landmark decision, since these will be the first generation projects to be executed under the stated legislation, taking into consideration that every hydroelectric venture that generates energy for the country has been undertaken by the State in a binational manner (Itaipu with Brazil and Yacyreta with Argentina), or through ANDE (as with the Acaray hydroelectric plant)

Vouga Abogados has supported the promotion of renewable energy for many years under the framework of the aforementioned Law 3009/2006, having actively participated in the Bureau of Renewable Energy and Sustainable REDIEX (a public-private instance of the Ministry of Industry and Trade for the promotion of investment and non-traditional exports), from which an initiative for a “Paraguayan Renewable Energies Plan” rose, a Law Project from the Senate to pursue renewable energies and the initial impulse, which proved decisive for the present project, today is a reality.

In the attached file the complete text of Law 3009/2006 can be found, and upon request, we may submit additional information on the hydroenergetic potential of Paraguay.