Ande nears JBIC agreement for 200MW expansion

Paraguay's state power company Ande has practically completed negotiations with the Japan Bank for International Cooperation ( JBIC) for a loan to install 200MW capacity in the Yguazú reservoir, a source from Ande told BNamericas. Yguazú regulates the flow of water at the Acaray plant, which lies downstream, but as part of a plan to take better advantage of Ande's existing infrastructure, the company would install turbines to generate peak time power from the 8,400 cubic hectometer volume of the reservoir. JBIC financing is "almost certain," and once confirmed Ande will call for construction bids, said planning department advisor Osvaldo Román. The financing would probably cover 80% of the approximate US$100mn costs, and Ande would provide the rest with its own resources. At the 190MW Acaray plant, the company is carrying out a modernization plan that would increase capacity by about 20% by replacing equipment that has reached the end of its useful life, Román said. Acaray generates some 850GWh/year, and according to newspaper reports, investment in the upgrade would be some US$25mn. THERMOELECTRIC GENERATION With Acaray and the Itaipú and Yacyretá binational plants that Paraguay shares with Brazil and Argentina respectively, Paraguay has more than enough hydropower to meet its own demand. Nonetheless, government level talks are ongoing with Bolivia for gas purchases. From the figures that Ande has seen, gas could be competitive with hydro generation, Román said, adding that by being located in the urban area of capital city Asunción, a thermoelectric plant would cut out the power losses suffered on the 330km, 220kV transmission line to Asunción from Itaipú. A resulting project would be modular and built up in units of 300-350MW, Román said. Previous reports have mentioned plant size of 750-1,500MW. This would provide Paraguay not only with a cushion with which to diversify its generation mix, but would allow for increased exports to Brazil, he added. Although Ande is modernizing and upgrading that line in works that will double capacity, losses are 7-8% and would be avoided by a new plant being located in Asunción itself. Losses multiply at the distribution stage. Ande started a US$70mn loss-reduction scheme this year, Román said. Spending in 2004 will be US$8mn, with the rest spent over the next few years.