The content has been shared, if you want to share this content with other users click here.
Argentine President Mauricio Macri and his Paraguayan counterpart, Horacio Cartes, signed an act of understanding to restructure US$17bn in debt owed by the operator of the 3.1GW Yacyretá dam – which the two countries share – to the Argentine government.
The amount owed by Entidad Binacional Yacyretá (EBY), a joint-venture between the nations, will be reduced to US$3.81bn, Paraguay's government said in a statement.
The restructuring will allow EBY to proceed with needed investments onsite, namely, a 270MW expansion that will allow Yacyretá to produce 10% more electricity annually, Argentine state news service Télam reported.
Bidding terms have already been prepared for a tender that will be launched for the expansion, the report said. Construction is expected to last four years. It was not discosed when the contract would be put out to tender.
EBY will have 30 years to pay back the debt, without interest, after a 10-year grace period.
Yacyretá, on the Paraná river, supplied 14% of Argentina's total power generation in March, according to wholesale power market administrator Cammesa.