- The EIB and IDB are each providing up to $70 million in financing, complemented by an EU investment grant of up to €10 million.
- This operation will strengthen the capacity, reliability and efficiency of Paraguay’s electricity system, reducing blackout risks and improving service quality for households, businesses and industry.
- Once operational, it will meet the additional electricity demand of approximately 1 500 families, enhancing supply reliability in the metropolitan area.
The European Investment Bank (EIB), through its development arm EIB Global, the Inter-American Development Bank (IDB) and the European Commission have announced a significant co‑financing package to modernise and reinforce Paraguay’s electricity transmission system. The operation will support the construction of the new 500/220 kV Emboscada substation and associated transmission lines. This strategic investment will strengthen the interconnected national system, improve security of supply for the metropolitan and central systems, and create the backbone for further renewable energy and interconnection projects.
Under the operation, EIB Global and the IDB are each providing up to $70 million in financing, complemented by an EU investment grant of up to €10 million through the Latin America and Caribbean Investment Facility (LACIF). The investment is in line with the EU Global Gateway Investment Agenda and supports Paraguay’s long‑term energy strategy.
Transformative investment for Paraguay’s electricity system
The project includes the construction of the Emboscada substation and its connection to the 220 kV network supplying Paraguay’s metropolitan and central systems, which together account for more than two‑thirds of national electricity consumption. This large‑scale investment will increase the capacity, reliability and efficiency of Paraguay’s electricity system, reducing the risk of blackouts and improving service quality for households, businesses and industry.
Once the new infrastructure becomes operational, it is estimated that by 2030 the project will benefit approximately 2 670 796 residents, equivalent to around 764 000 families. In this context, the system will be able to meet additional electricity demand and reinforce the reliability of the power supply in Paraguay’s rapidly growing metropolitan area.
The operation will also strengthen the role of Administración Nacional de Electricidad (ANDE), Paraguay’s vertically integrated public utility and the promoter, borrower and final beneficiary of the loan. The Republic of Paraguay will act as guarantor.
A partnership under the EIB–IDB mutual reliance framework
The project is being co‑financed under the long‑standing partnership between the EIB and IDB. In line with the renewed memorandum of understanding between the two institutions and the procedural framework for mutual reliance, the IDB will act as lead financier, with the EIB delegating procurement to the IDB. This approach streamlines project preparation and implementation, reducing the administrative burden for the promoter while ensuring full alignment with international best practice.
The non‑reimbursable EU funding blended with the EIB and IDB loans will support ANDE in aligning environmental and social procedures with EU standards and modernising service management through digitalisation, thereby improving long‑term institutional capacity and service quality for clients.
“This project is a flagship example of the EU Global Gateway strategy in action, and demonstrates the European Investment Bank’s strong commitment to supporting Paraguay’s energy transition. By upgrading the country’s electricity transmission network, we are strengthening energy security, enabling greater integration of renewable energy and helping to build the foundations of a modern, resilient and sustainable power system,” said EIB Vice-President Ioannis Tsakiris.
“This partnership reflects how multilateral development banks can work as a system. The IDB connects countries in Latin America and the Caribbean with global partners such as EIB Global and the European Union to support investments like this one that strengthen Paraguay’s electricity system and help deliver reliable energy for households and businesses,” said IDB President Ilan Goldfajn.
“This major investment marks a decisive step forward in strengthening Paraguay’s electricity network and providing a more reliable service. Support from the European Union, EIB and IDB is enabling us to reinforce the backbone of Paraguay’s electricity system and address the steady growth in electricity demand. This project will not only improve service quality and reduce the risk of interruptions, but will also increase system capacity, supporting the country’s industrialisation and broadening access to clean and sustainable electricity for all Paraguayans,” said President of ANDE Félix Sosa.
“With this Global Gateway investment, we are supporting more than 40% of the people in Paraguay to have a more reliable access to electricity and improved service in remote areas, by complementing infrastructure development with modernisation of the energy management systems.“, said EU Ambassador to Paraguay Katja Afheldt.
Background information
EIB Group
The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisation.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
In 2023, the EIF together with six Member States (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund-of-funds to scale up innovative startups. As of February 2026, this initiative has already enabled the creation of 13 European venture capital mega funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital). Photos of the EIB Group’s spokespeople and headquarters, logo files and video B-roll for media use are available here.
IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to
improving lives across Latin America and the Caribbean. Founded in 1959, the bank
works with the region’s public sector to design and enable impactful, innovative solutions
for sustainable and inclusive development. Leveraging financing, technical expertise and
knowledge, it promotes growth and well-being in 26 countries. Visit our website:
https://www.iadb.org/en
ANDE
The National Electricity Administration (ANDE) is an autonomous public sector utility company responsible for the generation, transmission, distribution and sale of electricity throughout Paraguay. Established as a decentralised institution with legal personality and its own assets, ANDE’s mission is to ensure a safe, reliable and efficient electricity supply, supporting the country’s economic, social and industrial development and the well‑being of its people. Headquartered in Asunción, ANDE plays a strategic role in the planning, expansion and maintenance of the National Interconnected System. It leads major energy infrastructure projects, including the strengthening of the 500 kV transmission network, widely regarded as the backbone of Paraguay’s electricity system. ANDE also promotes responsible management, with a strong focus on environmental sustainability, technological innovation and continuous improvement in service quality, delivering modern, reliable and accessible electricity solutions for the people of Paraguay.
Global Gateway
Global Gateway is the EU's external investment strategy to build smart, clean, and secure connections in the digital, energy, and transport sectors, as well as strengthen health, education and research systems globally. It fits the current geopolitical context by nurturing equal partnerships that increase strategic autonomy and resilience of Europe and partner countries alike. It is an attractive offer thanks to its sustainable investments. It is the EU's contribution to the Sustainable Development Goals beyond its borders.