US backs Venezuela's Corpoelec deal with IMPSA to restart Tocoma dam project

The U.S. government has publicly backed a multi-million dollar deal between Venezuela's state-owned electricity company, Corpoelec, and the U.S.-Argentine firm IMPSA. The agreement focuses on restarting construction at the stalled Tocoma hydroelectric dam, located on the Caroní River.

An announcement from the U.S. Embassy in Caracas stated, "Increasing electricity generation is fundamental to Venezuela's economic recovery and supports the three-phase plan of @POTUS and @SecRubio. The U.S. is proud to support the agreement between CORPOELEC and the U.S.-Argentine firm IMPSA, which will add 672 megawatts in 14 months." The statement was signed by the charge d'affaires, John Barrett.

This initiative involves resuming work on the "Manuel Piar" Tocoma dam, which has been abandoned for over a decade and had already consumed $9 billion in investments. The project, previously supported by CAF Investment Bank and the Inter-American Development Bank (IDB), reportedly cost three times its initial budget.

However, the deal with IMPSA has drawn scrutiny from energy experts. Investigations have pointed to alleged overpricing in previous contracts when IMPSA was owned by the Argentine group Pescarmona. The company reportedly failed to deliver turbines and later went bankrupt, requiring a state bailout in Argentina before being privatized again in January 2025. According to reports, including one from Venezuela's National Assembly, the civil works for Tocoma were nearing completion when it was abandoned.

The new owners of IMPSA, including the Industrial Acquisitions Fund (IAF), acquired the company for $27 million and assumed $576 million in debt. They are now reportedly seeking over $350 million from Venezuela for alleged outstanding debts.

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Increasing electricity generation is fundamental to Venezuela's economic recovery and supports the three-phase plan of @POTUS and @SecRubio. The U.S. is proud to support the agreement between CORPOELEC and the U.S.-Argentine firm IMPSA, which will add 672 megawatts in 14 months.