Economy & Business - July 2026

PARAGUAY | Itaipú transfers funds to Paraguay under Annex C. Itaipú Binacional, the company that operates the binational Itaipú hydroelectric dam, announced on 6 July that it has paid Paraguay US$239m in the first half of the year. The payment was made via Annex C of the Itaipú Treaty, which dictates how Brazil and Paraguay sell surplus electricity generated by the dam to each other. The amount was paid in the form of royalties, energy transfers, and payments to Paraguay’s state energy company (Ande). “These disbursements, provided for in Annex C of the Treaty, are essential for provincial governments, municipalities, and the state-owned enterprise to carry out their respective projects for the benefit of the population,” said Itaipú Binacional in a statement. With regard solely to payments made in June, royalties totalled US$22m, and compensation for power transfers reached US$10m, while Ande received US$1.7m in compensation. Annex C has been a sticking point in negotiations over the binational dam, with Paraguay pushing for better terms under which to sell the surplus electricity generated by the dam in the country to Brazil, which has significantly higher electricity needs.