ATOME’s Paraguay Project Granted Free Trade Zone
ATOME Energy the green fertiliser development company had announce that its 145MW Villeta Project in Paraguay has been granted Free-Trade Zone (‘FTZ’) status by Presidential decree bringing significant financial benefits to the project and its funders. It is only the 6th FTZ granted by Paraguay and means that ATOME will benefit from exemptions on municipal, VAT, and corporate income taxes.
Strong government backing for ATOME’s projects
This is an unequivocable demonstration of government support for ATOME’s Villeta Project and its determination to make the project a success both for ATOME and Paraguay’s ambition in being a world leader in green fertiliser production. This support has been key in relation to the granting of the FTZ and the Environmental Licence, having expeditiously passed all necessary inter-governmental approvals, which are important milestones towards project financing and construction of the Villeta facility.
Paraguay Economic performance and growth aspirations
Paraguay has political and economic stability and one of the best performing economies in Latin America, with inflation falling sharply this year to 3% (as of October 2023) and economic growth expected by Fitch to rebound by 5.2% in 2023. The latest Fitch Ratings report affirmed Paraguay’s stable outlook at a BB+ credit rating, one mark short of investment grade, whilst raising the country ceiling to BBB-.
Peter Levine, Chair, commented:
“Through successive administrations it has been both consistently crystal clear that Paraguay is open for business and encourages and supports serious foreign investors and investments.
“We are greatly honoured by President Peña by his signing of the decree for the tax-free zone in Villeta and we are grateful for the support and trust he and his Ministers have given to us in this important landmark project for the country of Paraguay.”