Cook bacon in medium skillet over low heat until almost crisp; remove from skillet and set aside.
Cook onion in drippings until golden. Stir in tomatoes, rice, salt, ground black, red peppers, and water. Bring to a boil; stir once or twice. Reduce heat, cover, and simmer 15 to 20 minutes or until rice is tender and liquid is absorbed.
Blend tomato paste in 1 tablespoon water. Stir tomato paste and reserved bacon into rice.