MercoPress. South Atlantic News Agency

Cartes and Rousseff confirm Mercosur with inauguration of 500 KW power plant and transmission line

Rousseff said Paraguay is and continues to be a strategic ally of Brazil

Paraguayan president Horacio Cartes and his peer from Brazil Dilma Rousseff inaugurated on Tuesday a 500KW power plant and line from the Itaipú hydroelectric dam to the city of Asunción which should help end endemic blackouts and supply a new industrial park.

The transmission plant was started in 2010 at a cost of 555 million dollars and the inauguration ceremony was an occasion for the neighboring countries to confirm close relations and commitment to the Mercosur bloc, which with resources from a special fund for infrastructure helped to finance the public work.

“Paraguay is and will continue to be a strategic ally of Brazil”, emphasized President Rousseff who recalled that Brazil contributed with an additional 300 million dollars for the special Mercosur fund.

“The integration process of the region's countries must be 'to win, to win' and not based on exploitation between neighbors; integration and responsibility must be the main objective of our countries” added President Rousseff underlining that the inaugurated power station is “a tool for integration and the strengthening of bilateral relations”

Likewise Rousseff said that “a new development chapter has been opened which will enable Brazilian companies to settle in Paraguay and create jobs” and announced support for Paraguay's programs to combat poverty and funds to help build a second bridge linking Brazil with Paraguay.

President Cartes underlined the goods relations with Brazil “and particularly with President Rousseff for whom I have a very special consideration for her immense gratitude”.

“Brazil and Paraguay are in a new chapter of cooperation that will increase and deepen and become shared efforts with time. Together we should be building two, three similar transmission lines in the near future”, said Cartes.

In reference to Mercosur, Cartes said that differences with Brazil and the other members should be addressed with dialogue, “when there is political will no barrier can impede a fair integration, generous and long-lasting”.

Following the official ceremony with the presence of members from Paraguay's Congress and Judicial branch, President Cartes presented to the Brazilian leader the future ambassador in Brasilia, Manuel Caceres.

Itaipú is the world's largest operational hydroelectric dam, jointly owned and managed by Brazil and Paraguay and provides 25% of Brazil's power. Paraguay sells its share of surplus energy to Brazil, but has insufficient infrastructure to take advantage of the cheap power. The new power plant and 500KW line should help address Asuncion increasing demand and supply a new industrial park which already has Brazilian companies interested in setting up business.

Itaipú generated 95 million MW in 2012 and this year the target is 100 million MW.