Chronic underutilization: privatization to unlock value
18 de March de 2026
Chronic underutilization: privatization to unlock value
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Análisis estratégico sobre institucionalidad, economía y desarrollo publicados en medios especializados.
Chronic underutilization: privatization to unlock value
Every loan a bank grants—whether to a farmer, a small business, or a family buying a home—starts with a fundamental question: How much does it cost the bank to raise funds? That cost influences the loan’s interest rate, the bank’s willingness to grant it, and the amount of financing that flows into the real economy.
For decades, the National Electricity Administration (Ande) has been the undisputed pillar of Paraguay’s electricity sector: a vertically integrated monopoly that generated, transmitted, and distributed electricity, all under one roof. That model, established by Law 966/64, made it possible to electrify the country at a rapid pace thanks to the enormous hydroelectric potential of Itaipú and Yacyretá.
Latin America’s tech ecosystem is advancing at a rapid pace. Startups are targeting large markets, adapting quickly, and introducing new business models into everyday life. However, the main obstacle isn’t always product design or a lack of talent. In my work evaluating valuations, risks, and capital structures for startups and scale-ups in the region, I constantly encounter the same structural barrier: a high weighted average cost of capital (WACC).
The National Electricity Administration (Ande) is not going to disappear. Period. It will remain a state-owned, public, Paraguayan company. What is coming to an end—or should come to an end—is its absolute monopoly on the distribution and sale of electricity.
Architect of Latin American economic development.
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