Brazilian, Paraguayan presidents to discuss Itaipu energy supply

The presidents of Brazil and Paraguay will meet Monday to discuss whether Paraguay could widen its access to the energy generated by Itaipu hydroelectric power plant.

Luiz Inacio Lula da Silva and his Paraguayan counterpart Fernando Lugo are scheduled to meet in Ponta Pora, a Brazilian city bordering Paraguay.

"Paraguay faces difficulties to provide security in its energy supply. To improve this situation, it is fundamental that a 500-kw transmission line is built to reach the environs of Asuncion," capital of Paraguay, Lula's spokesman Marcelo Baumbach said Friday.

According to Baumbach, the total cost of the project is estimated at between 350 and 400 million U.S.dollars. The bidding process is expected to be ready by the end of this year.

During the meeting, Lula is expected to propose to Lugo to finance the project with resources from the Fund for the Structural Convergence and Institutional Strengthening of Mercosul so as to exempt Paraguay from spending a large sum of money and protect Brazilian consumers, for whom the cost of energy could increase.

Itaipu is a binational undertaking run by Brazil and Paraguay. It is located at the Parana River, in the border region of the two countries.

The installed generation capacity of the hydroelectric power plant is 14 gw.

Source: Xinhua