Venezuela's $100 billion grid rebuild push faces setbacks as firms question payments, with under 13,000 megawatts available from a capacity of 36,000 MW, Reuters reported Monday, citing two sources involved in talks.
Executives from Siemens Energy and GE Vernova (GEV) raised payment concerns during April meetings in Caracas, prompting financiers to be cautious about supporting grid upgrades.
Those concerns weakened confidence in Venezuela's effort to revive infrastructure under a $100 billion reconstruction plan backed by Washington.
Interim President Delcy Rodriguez is prioritizing reliable electricity after taking office in January, but the government has not secured firm payment guarantees for contractors.
An executive who attended the Caracas meeting said a decade of neglected plants created massive repair needs, while authorities still lack a clear payment mechanism for suppliers.
Available generation remains below 40%, driving repeated outages and restricting industrial output nationwide, according to the report.
Thermal plant expansion through 2013 under Hugo Chavez left billions of dollars unpaid to contractors, many of whom authorities are now urging to return.
Unclear project priorities, equipment needs, and approval requirements from both Washington and Caracas continue to delay investment decisions, the report added, citing the sources.
Venezuela operates less than 13,000 MW from a total installed capacity of 36,000 MW, with fuel-based plants accounting for about 2,500 MW, or roughly 13% of capacity.
Rodriguez is targeting repairs at two major thermal plants in early phases, though officials have yet to outline a broader recovery strategy.
Multinational companies remain cautious about returning to Venezuela after past disputes during the Hugo Chavez era, when unpaid contracts eroded trust and discouraged future engagement.
Several firms that did not receive cash payments pursued arbitration or filed legal claims abroad after accepting promissory notes, which they later sold at steep discounts.
Rodriguez's government turned down a proposal from foreign firms that requested upfront payments for repairs and spare parts, while some financiers proposed routing payments through US Treasury-supervised oil revenue accounts, the report added, citing sources.
has reached out to Siemens Energy, GE Vernova and PDVSA for any comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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