Neuquén heads towards the construction of Nahueve Hydroelectric Plant


National Government issued Decree 1039/16 signed by the President Mauricio Macri and the Ministers Alfonso Prat Gay and Marcos Peña. The decree, published in the Official Gazette on 26th September, approved the content of the guarantee agreement to be entered between Argentine Republic and Abu Dhabi Fund for Development to cooperate in the execution of the Nahueve Hydroelectric project. The same legal norm included the counter guarantee content to be entered between the Ministry of Economy and Public Finance and the Province of Neuquén. Administrative requirements have been thus accomplished to advance in the execution of a project that will bring about important benefits for the population in the north of Neuquén and the province as a whole. ADI-NQN S.E.P, responsible for the full development of “Nahueve Multipurpose project ", has launched a private call for tenders to elaborate the Executive Project and has received three proposals of local consultants. The contract will be awarded over a period of no more than 30 days, and the execution period is seven months. Once this stage is completed, a public call for tenders shall be issued to award the civil engineering works and the supply and installation of electro mechanic works. It is estimated an execution period of 24 months and direct employment for approximately 150 people.

This project will be located in "Los Carrizos" location, in Villa del Nahueve, approximately 80 km far from Chos Malal. It is a multipurpose hydroelectric plant on Nahueve river with an installed capacity of 4 MW aimed to increase the reliability of electric power, currently provided by EPEN in the north of the province; expand the area under irrigation, about 24 hectares, and supply water to its inhabitants.

In 2013, ADINQN launched a call for expression of interest for private investors with adverse results due to financial conditions in the country. Given this situation, the Agency decided to seek international markets
and submitted Nahueve Project to International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD), an entity of the United Arab Emirates Government. As a result of this presentation, Nahueve project was shortlisted, in a preliminar selection, within 77 projects, then among 22 and, finally, it took the first place among the 5 finalists. A loan of U$S 15 million shall be granted with a repayment period of 20 years, a fixed dollar rate of 2% annually, and a grace period of 5 years.

In January 2015, IRENA communicated the decision to grant the loan and the President of ADI-NQN, Mr. Pedro Salvatori, attended the annual assembly in Abu Dhabi to receive the official notification. In May 2015, the Provincial Legislature sanctioned Law 2950 that authorizes the Executive Power to enter contracts, and entitles ADINQN to administer the funds and public bidding calls to carry out the Project. 

Finally, in February 2016, the loan agreement was signed by ADFD Director General and Governor Omar Gutierrez. Later on, Decrees 737 and 1039 authorized the guarantee granted by the national government and included the loan to the national budget.


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