Paraguay
Paraguay Rules Out an Ongoing Atome Lawsuit and Reviews the Dispute Over Its Villeta Project
The Attorney General’s Office reaffirmed that the country will uphold legal certainty and respect for investments, while warning that it will protect the national interest. The dispute is linked to the power supply contract for the fertilizer plant the British firm plans in Villeta.
The Attorney General’s Office of the Republic reported that, for now, there is no lawsuit or arbitration initiated by Atome PLC against the Paraguayan state, following the notice filed by the company over an investment dispute that could escalate to an international forum if no understanding is reached within three months, according to Última Hora.
In a brief statement, the PGR said the state is evaluating the company’s arguments and that, in that context, it is not appropriate to advance a position on the substance of the dispute. At the same time, it underscored Paraguay’s commitment to legal certainty, respect for investments and compliance with its international obligations.
The institution also said the government remains willing to engage in dialogue, but will act in defense of the interests of the Paraguayan state and the national interest, according to what was reported by Última Hora.
The dispute is linked to the fertilizer production project that Atome is promoting in Villeta, valued at USD 665 million, following the repeal of executive decrees related to the terms of the power purchase contract. According to Última Hora, after several months of unsuccessful talks with the Administración Nacional de Electricidad, the company turned to the consultation mechanism provided for in the bilateral investment treaty between Paraguay and the United Kingdom.
The newspaper added that in June the ANDE officially rejected a request from the firm to change the tariff and commercial terms of its supply contract. The notice, dated June 26, 2026 and addressed to James Spalding, president of Atome Paraguay, was signed by Félix Eladio Sosa, then head of the state-owned utility.
According to Última Hora, the ANDE argued that, after technical and financial analyses, it was not possible to accept the request. The outlet also said Atome was seeking a fixed dollar-denominated tariff of around USD 30 per MWh for about 10 years, while the state utility has a technical tariff of USD 44.3 per MWh and projects it could rise to USD 50 per MWh in the coming years.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
