After years of uncertainty and a financial contingency that halted works and supplier payments, the Entidad Binacional Yacyretá (EBY) is showing signs of recovery, according to a report by Ultima Hora. Federico Vergara, the financial chief of the Paraguayan side, said an operational agreement signed with the government of Argentine President Javier Milei has normalized cash flow, enabling regular payments for generated energy.
The crisis, which led EBY to declare a financial contingency in March 2024, appears to have eased. Vergara noted that the situation improved dramatically after the operational agreement took effect in June 2025.
A key factor is Argentina’s compliance with the effective collection tariff of USD 28 per MWh delivered. This revenue allows EBY to settle debts dating back to the previous decade, including obligations to contractors for the Encarnación waterfront works (2012-2014) and bank loans. Vergara detailed that the administration reduced general expenses from an average of USD 34 million in 2022 to about USD 19 million in 2025, generating annual savings of roughly USD 15 million through strict austerity measures.
Regarding the mechanization of the Aña Cuá branch, Vergara said strategic projects are now advancing with EBY’s own funds, unlike previous years when lack of funds paralyzed works. Between 2024 and March 2026, EBY invested over USD 100 million of its own resources in the project, which is estimated to have a final cost of USD 600 million. Vergara also highlighted the arrival of electromechanical equipment from the firm Rieder for generator park repairs, a task he called “priority” after years of technical neglect.
Despite the financial relief, EBY’s structural problem persists: the lack of a definitive tariff approved by the national congresses. “We are in limbo waiting for the Argentine Congress to eventually address Note Reversal 2-2017. In the meantime, we are working on reviewing and updating those numbers based on the 2025 balance sheet,” Vergara explained.
On staffing, Vergara acknowledged that EBY could function with fewer employees—around 1,200—but maintained that high salaries and benefits are governed by binational norms. He said the financial restructuring will allow resources to reduce personnel, and efforts are underway to prevent mass hiring of new workers. Vergara noted that the salary levels were conceptualized when Itaipú and Yacyretá works began, based on a protocol that is part of the treaty and establishes basic management rules for both employees and contractor firms.