The next Central American integration project: cheaper capital
Los líderes centroamericanos hablan constantemente de integración: reforma comercial y aduanera, además de logística e infraestructura. Pero el próximo avance concreto de la región podría provenir de algo más discreto: la reducción del costo del capital mediante la armonización de las normas y procedimientos que determinan los costos de endeudamiento público y la forma en […]
The race for net-zero financing: Brazil and Mexico attract cheaper capital
While Western institutional investors and Chinese state-backed lenders compete for influence over Latin America’s energy infrastructure, one factor is quietly determining who will build the region’s clean energy future: the cost of capital.
Privatization for Efficiency and Growth in Paraguay
Privatization for Efficiency and Growth in Paraguay
Resolving the financial challenges will shape the future of energy
After four installments, the in-depth analysis of Yacyretá paints a clear picture: it is a strategic power plant with 3,200 MW of installed capacity and annual production of nearly 20,000 GWh, but it remains trapped in an unfinished financial framework.
Political Risk and the Cost of Capital: Venezuela, Ecuador, and Uruguay
In previous installments of this series, we examined how inflation acts as a hidden tax that makes money more expensive, and we broke down the components of equity, debt, and the weighted average cost of capital (WACC).
Transition to an individual account-based system in Paraguay's pension system
Transition to an individual account-based system in Paraguay's pension system
Historical disparities are straining the compensation system
Las tres primeras entregas analizaron a la Entidad Binacional Yacyretá como proyecto estratégico y binacional: su origen en 1973, la operación parcial hasta el 2011, las asimetrías tarifarias y el impacto técnico-ambiental de una represa que aún no alcanza su diseño pleno. Con 3.200 MW instalados y deudas cruzadas millonarias, la obra sigue incompleta. En […]
The Hidden Tax of Inflation on Capital: Lessons from Argentina and Bolivia
In previous installments of this series on financing international projects in Latin America, we examined how sovereign risk and exchange rate volatility influence the cost of capital for long-term investments. This article focuses on inflation, an equally critical factor that operates quietly but relentlessly.
Current production, technical aspects, and environmental impact of the hydroelectric plant
Today, with 20 generating units, Yacyretá produces approximately 20,000 GWh annually, meeting 15–20% of Argentina’s electricity demand and a significant portion of Paraguay’s. From a hydrological standpoint, the Paraná River has an average flow of 14,000 m³/s, with peaks of 50,000 m³/s during floods.
The Cost of Capital in Latin America: How Companies Decide Where to Invest
Let’s imagine a company that is considering a $500 million lithium project in northern Chile. The geology looks promising. Global demand for batteries is on the rise. The technology exists. However, the project may never come to fruition.
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