According to the official agenda, both leaders will meet at 11:00 local time at the Itamaraty Palace, headquarters of the Foreign Ministry.

A note from the Ministry of Foreign Affairs indicates that the two leaders will discuss “the main issues on the bilateral and regional agendas, including that of Itaipú Binacional, infrastructure integration works, the fight against transnational illicit activities and Mercosur.”

Brazil and Paraguay are negotiating a new understanding on the division and tariff of the energy produced at the plant, located on the border between the two countries.

The value is decided annually, but it is still undefined due to impasses between the parties. Paraguay defends increasing the rate, while Brazil wants a reduction. Since Paraguay consumes less, the Brazilian government buys part of half of the country’s energy.

With the increase in electricity consumption in Paraguay in recent years, the supply for Brazilians has decreased and, with it, the rate of the cost of energy transferred to Brazil has gone up.

Itaipu’s rate depends on the value needed to cover the expenses of the so-called Unitary Cost of Electricity Services, which is paid by the taxpayers of the two countries to cover the costs of operation and maintenance of the plant, and the transfers of royalties for water use.

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