The loan will finance the construction of the 200MW hydro plant, the installation of a distribution line and the procurement of consulting services.

Plans are in place to build the new plant to utilise the existing 620km2 Yguazu reservoir. Construction of a sub-station and distribution facilities to provide a link between the plant and Paraguay’s national grid are also part of the venture.

The Yguazu project is part of ‘The Initiative for the Integration of Regional Infrastructure in South America’, a plan to promote regional integration through strategic and systematic infrastructure development, advocated by 12 South American countries. It is the first ODA loan commitment that JBIC has made for this initiative.