Venezuela signs historic deal with Impsa to complete Tocoma hydroelectric plant

Venezuela has signed a "historic agreement" with the multinational company Impsa to finalize the Tocoma hydroelectric power plant in Bolívar state, according to acting president Delcy Rodríguez. The deal is also intended to advance work on the national electric system, aiming to add 2,640 megawatts to the country's capacity.

This initiative seeks to guarantee the stability of the essential public service and stimulate economic growth. The agreement occurs during what Rodríguez described as a "new political moment" for Venezuela, characterized by an openness to private and foreign investment in strategic sectors like oil, mining, and electricity. This shift also coincides with closer ties with the United States.

Recently, the Venezuelan government established a commission to select contractors for the electricity sector, an area historically controlled by the state but plagued by years of crisis. The administration under Rodríguez aims to revitalize this sector through private and foreign investment. A decree published in the Official Gazette formalized the creation of this permanent group responsible for selecting contractors for works, goods, and services.

Venezuela frequently experiences power outages, particularly in remote regions. The government blames foreign sanctions, primarily from the U.S., while the opposition and experts attribute the issues to corruption and a lack of maintenance. In June, the National Assembly approved a reform of the Organic Law of the Electric System and Service to encourage private investment. Previously, Rodríguez had announced negotiations with Siemens and General Electric to address the electrical crisis in Zulia state, and U.S. chargé d'affaires John Barrett met with the Minister of Electric Energy to discuss grid reconstruction.

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The alliance also aims to advance work on the national electric system, which will add 2,640 megawatts to the country, in order to guarantee the stability of this essential public service for the population and promote the economic growth of Venezuela.