Economist backs Atome's tariff to secure $1 billion investment amid ANDE concerns

Economist Amílcar Ferreira has publicly defended a controversial preferential electricity tariff for Atome, asserting it is essential to secure a $1 billion investment that could significantly benefit Paraguay. Ferreira, a financial advisor, argued on X that the country should not miss this opportunity, calling it an "anchor investment" that will attract other businesses, thereby boosting employment, exports, and food security.

He emphasized that such large projects require predictable energy costs, a non-negotiable requirement from international financing banks. Ferreira suggested that Atome's electricity price could be set at current levels for large industries and frozen for 10 years, the estimated debt repayment period. "With an intelligent contract design that balances the project's requirements with ANDE's necessary financial equilibrium, a strategic investment that will be a milestone can be achieved. It is totally feasible," he stated.

Ferreira's stance aligns with some government officials, including Chief of Staff Javier Giménez, who defended the proposed $30/MWh tariff. Giménez argued it would not harm ANDE financially, stating the cost of supply for such industries is around $28/MWh. However, this contrasts sharply with warnings from ANDE technicians and business leaders who fear significant financial damage to the state utility. They also point to Atome's "zero execution" since 2021.

ANDE president Félix Sosa finds himself in a difficult position, defending the utility's financial health against pressure to approve the deal. Sosa has publicly stated that the tariff Atome seeks would not cover technical costs. He also revealed that Paraguay's electricity generation costs are projected to reach $50/MWh by 2043, making a 15-year price freeze unviable. The executive branch continues to debate the contract's future.