A standoff between ANDE, Paraguay’s state electricity utility, and British company Atome has put a green fertilizer industrial project on hold and raised questions about the country’s electricity-use policy. Energy expert Victorio Oxilia Dávalos says the case involves both investment commitments and unresolved contract negotiations.
Atome was seeking to raise about $700 million for the project. The company sent the state formal notice three months in advance of possible international arbitration, Oxilia said. The expert linked the risk to the bilateral investment treaty between Paraguay and the United Kingdom, in force since the 1990s, which provides protection for foreign investors.
There is also a domestic dispute: a preliminary contract signed in 2022 reserved 60 to 120 megawatts of capacity for the company. To move the project forward, Atome needs an amendment or a new contract guaranteeing tariff predictability for 10 years. The lack of agreement, Oxilia said, contributed to the suspension and delays.
The project brings together five industries and could create between 500 and 1,000 skilled jobs, according to the assessment presented by the expert. This is an estimate of the project’s potential, not a count of jobs already created. Oxilia says tariff discussions should also take into account the economic activity and employment that electricity use could make possible.
The expert contrasted negotiations with Atome with enforcement against illegal cryptocurrency mining. He alleged that clandestine operations, including those in homes, consume 25% to 30% of the country’s available electricity and offer no social return or jobs. The report presented no independent data confirming this proportion; it should therefore be understood as Oxilia’s claim, not as a verified official statistic.
Oxilia criticized what he sees as ANDE management focused on revenue collection rather than using electricity to drive industry. The comparison highlights two distinct challenges: setting stable terms for a major investment and curbing losses or irregular consumption in the electricity system. The outcome of negotiations with Atome and the authorities’ response to clandestine mining remain undecided.