Mendoza-based industrial firm IMPSA has finalized an agreement with the Venezuelan government to resume construction at the Tocoma hydroelectric dam, a project stalled since the mid-2000s. The deal, which includes rehabilitating the broader National Electric System (SEN), follows a specific license granted by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), allowing the company to navigate existing sanctions, according to the Venezuelan presidency and company executives.
How did IMPSA secure the deal despite U.S. sanctions?
The project moved forward after the U.S. Treasury’s OFAC issued an authorization that permitted the firm to engage with Venezuelan state entities, including the state-run utility Corpoelec. According to Jorge Salcedo, CEO of IMPSA, the company had significant equipment stranded in Mendoza storage facilities due to prior payment disputes and U.S. trade restrictions. The current agreement functions as an addendum to previous, unfinished contracts. By formalizing this legal pathway, IMPSA becomes one of the few international firms operating on Venezuelan energy infrastructure under a sanctioned environment.
The Tocoma hydroelectric plant is part of the Guri complex, which serves as the backbone of Venezuela’s power grid. The full complex includes four independent plants along the Caroní River: Simón Bolívar (Guri), Caruachi, Macagua, and Tocoma.
What is the scale of the energy infrastructure project?
The initial phase aims to add 2,640 megawatts (MW) to the national grid, a figure that represents approximately 2% of the country’s total installed capacity. According to company disclosures, the first 100 days of the project will focus on repairing three 80 MW turbines at the Macagua plant. Following this, the company plans to install two 216 MW units at the Tocoma site. A secondary phase is expected to contribute an additional 1,968 MW. While this output remains a fraction of total demand, it serves as a critical test for the country’s newly reformed energy laws, which now allow private sector concessions for generation and distribution.
How has the company’s ownership structure changed?
The agreement marks a new chapter for the century-old firm founded by Enrique Epaminondas Pescarmona. Following its nationalization in 2021 under the Alberto Fernández administration, the company was privatized in February 2025. The current owner, Industrial Acquisitions Fund (IAF)—a special purpose vehicle with ARC Energy as a primary partner—acquired the firm by committing $27 million in capital and assuming $576 million in restructured debt. Mendoza Governor Alfredo Cornejo stated on X that the deal represents a “huge effort for recovery” and a positive move for Argentine industry.
Comparison: Debt and Investment Context
| Metric | Details |
|---|---|
| Estimated Debt (Venezuela) | $250 million – $300 million |
| IAF Capital Injection | $27 million |
| Assumed Debt (IAF) | $576 million |
Frequently Asked Questions
Why was the Tocoma project stalled for nearly two decades?
The project was primarily halted due to a combination of payment defaults by Venezuelan authorities and the imposition of international economic sanctions, which complicated cross-border financial transactions and equipment delivery.
What does the new Venezuelan energy law change?
The reform, approved by the National Assembly in June 2026, allows private companies to generate, distribute, and commercialize electricity through state-granted concessions, moving away from a purely state-run model.
Is this project authorized by the United States?
Yes. According to reports, the project relies on specific, sanctioned-related authorizations from the U.S. Treasury’s OFAC, ensuring the company complies with U.S. regulatory standards despite the nature of the client.
When tracking infrastructure investments in sanctioned nations, monitor OFAC license announcements. These documents often provide the only legal framework under which multinational firms can resume stalled industrial projects.
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