Paraguay’s Pena Says Will Start Talks With Brazil Over Itaipu Plant’s Financial Basis

12


Paraguay’s President-elect Santiago Pena said on Friday he expects talks with Brazil over the binational Itaipu hydroelectric dam to start on Aug. 13, after meeting with his counterpart Luiz Inacio Lula da Silva, indicating that both countries are managing to find a financial agreement about its energy production.

Both countries expect to reach an agreement about the financial bases of the energy tariff generated by the bi-national company. Under current rules, which expire this year and will be subject to review, each country is entitled to 50% of Itaipu’s energy.

Pena said he expects to maintain the sale of energy from the hydroelectric plant to Brazil “at a cost price” and that he expects both countries to ink a deal by the end of this year.

Source: Reuters