The first company privatized by Milei signed an agreement with Venezuela to carry out works on hydroelectric plants

The company IMPSA, the first state-owned company privatized by the Government of Javier Milei, signed an agreement with Venezuela this Saturday to carry out strategic works on hydroelectric plants such as the Tocoma plant, a project that has been stalled since the mid-2000s.

The agreement marks a new step in the company's international projection following its transfer to the private sector in 2025, when the national government transferred its majority stake to a U.S. consortium.

The operation represented the first concrete privatization of the libertarian management, in line with its policy of reducing the size of the State.

In this context, IMPSA is repositioning itself in the regional energy sector with an agreement aimed at reconstructing part of the deteriorated Venezuelan electrical grid.

According to the presidency of that country, “we have signed a historic agreement with IMPSA, a recognized Latin American company, to complete the Tocoma Hydroelectric Plant and advance in works for the National Electric System (SEN) that will add 2,640 megawatts (MW) to the country, in order to guarantee the stability of this essential public service for the population and promote the economic growth of our nation.”

The initiative includes the completion of Tocoma and works on the electrical system, in a country affected by recurrent power outages even in its capital. The project is part of the Guri hydroelectric complex, one of the most important in Latin America, located on the Caroní River.

The agreement also includes initial interventions in other plants. As explained by IMPSA's CEO, Jorge Salcedo, in the first 100 days, they will seek to repair three 80 MW turbines in Macagua, while later two 216 MW units will be installed in Tocoma. In a second phase, the project could contribute an additional 1,968 MW.

The history of IMPSA

The company was nationalized in 2021 during the Kirchnerist government of Alberto Fernández and later privatized at the beginning of 2025.

The consortium Industrial Acquisitions Fund (IAF), whose main partner is the U.S. company ARC Energy, took control after presenting a capital offer of 27 million dollars and assuming a debt of nearly 576 million.

Negotiations to resume works in Venezuela were conducted directly with the Ministry of Energy and the state-owned Corpoelec, although under monitoring from the United States due to the origin of the new controlling group of the company.

The agreement had been blocked for years due to payment issues with the Venezuelan regime, which left equipment unused in Mendoza.

The situation was unblocked after authorization from the Office of Foreign Assets Control (OFAC), which allowed the reactivation of the contractual relationship through an addendum to previous unfinished agreements.

Although the initial contribution of 2,640 MW represents a smaller portion of Venezuela's total installed capacity, the project is considered a first step in the reconstruction of the country's electrical system, which has been severely deteriorated after years of lack of investment.

Furthermore, the agreement occurs in a context of opening up the Venezuelan energy sector, after the National Assembly approved a legal reform to allow private participation in the generation, distribution, and marketing of energy through concessions.

Thus, IMPSA, now under private control following the first privatization of Milei's government, seeks to consolidate its return to large-scale international projects in an energy market that is trying to reactivate after years of structural crisis.