German Cooperation (GIZ) Launches Tender for Long-Term Electricity Contract Models in Bolivia

development

Stage

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, representing German cooperation, has issued a call for proposals to design and propose long-term electricity contract models for Bolivia's power sector. These models will be structured through Public-Private Partnerships (PPPs) and competitive auction schemes, aiming to optimize risk allocation and mitigation between parties. The initiative seeks to develop standardized Power Purchase Agreements (PPAs) with 15 to 25-year horizons, incorporating hybrid remuneration schemes (payment for energy and capacity) and performance incentives. The contracts will also focus on bankability through partial guarantees, reserve funds, and credit risk coverage mechanisms, with potential involvement of multilateral organizations and export credit agencies.

Counterparts (2)

Offtaker

Bolivian Power Sector Entities

company

Empresa Nacional de Electricidad (ENDE) is Bolivia's state-owned electricity company, responsible for generation, transmission, and distribution of electricity across the country. It operates a diverse portfolio of power plants, including hydroelectric, thermal, and renewable energy sources, serving the national grid.

Developer

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

company

Deal Analysis

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has launched a tender for long-term electricity contract models in Bolivia, structured through Public-Private Partnerships and competitive auctions. These models aim to optimize risk allocation for solar, onshore wind, offshore wind, hydro, storage, and hybrid projects. The initiative seeks to develop standardized Power Purchase Agreements with 15 to 25-year horizons, incorporating hybrid remuneration schemes and performance incentives. Contracts will focus on bankability through partial guarantees, reserve funds, and credit risk coverage mechanisms, with potential involvement of multilateral organizations and export credit agencies.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH launched tender
Long-term electricity contract models for Bolivia's power sector
Public-Private Partnerships (PPPs) and competitive auction schemes
Standardized Power Purchase Agreements (PPAs) with 15 to 25-year horizons
Hybrid remuneration schemes and performance incentives

Source Intelligence

KEY DETAILS

The initiative seeks to develop standardized Power Purchase Agreements (PPAs) with 15 to 25-year horizons, incorporating hybrid remuneration schemes (payment for energy and capacity) and performance incentives. The contracts will also focus on bankability through partial guarantees, reserve funds, and credit risk coverage mechanisms, with potential involvement of multilateral organizations and export credit agencies.

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Location

La cooperación alemana en Bolivia convoca para diseñar contratos eléctricos de largo plazo mediante APPs y subastas

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PPA Details

En este marco, se prevé el uso de contratos de compraventa de energía (PPA) estandarizados, con horizontes de 15 a 25 años, que incorporen mecanismos de indexación acordes a la estructura de costos del sistema eléctrico.

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Announcement

marzo 31, 2026

PARTIES MENTIONED IN SOURCE

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH initiator

"La cooperación alemana, a través de la Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ, Agencia de Cooperación Alemana para el Desarrollo) GmbH, lanzó una convocatoria dirigida a personas jurídicas en Bolivia para diseñar y proponer modelos de contratos de largo plazo para el sector eléctrico, estructurados mediante Asociaciones Público-Privadas (APPs) y esquemas de subastas competitivas."

high quality Enriched Apr 1, 2026

Timeline

Announced

Mar 31, 2026

Signed

Closed

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