The 500 kV line project will run from the right bank substation of Itaipú Binacional to the Villa Hayes substation and is co-financed by the Inter-American Development Bank and Taiwan. Additional investments totaling USD 106 million will support expansions in substations, underground line construction from San Lorenzo to Villa Aurelia and Molino neighborhoods, and modernization of the static var compensator at Limpio substation, critical for voltage stability in high consumption areas.
The Chaco’s 220 kV transmission line will extend from Villa Hayes through the emerging Arroz route to Concepción, Pozo Colorado, and ultimately Loma Plata. At Pozo Colorado, a new 50 MVA substation with four distribution lines is planned. This project addresses capacity limitations on the existing single transmission line, enabling growth in the Chaco and northern regions of eastern Paraguay.
Parallel to infrastructure developments, law enforcement seized cocaine shipments in Loma Plata on January 23, 2026, highlighting ongoing regional security challenges. Additionally, a violent robbery attempt in Fernando de la Mora resulted in two deaths, underscoring public safety concerns that may impact investment confidence in certain areas. The intersection of infrastructure upgrades and social stability will be key for Paraguay’s sustained economic development in 2026 and beyond.
This article was curated and published as part of our South American energy market coverage.
