From January to July 2025, Itaipú Binational transferred over US$303 million to the Paraguayan state. This sum comprises royalties, energy cession payments, and funds allocated to the National Electricity Administration (Administración Nacional de Electricidad, or ANDE). These payments, detailed in Annex C. of the treaty, are crucial for regional governments, municipalities, and the national electricity company to undertake essential public works.
Itaipú Binational (Itaipú Binacional) is a hydroelectric power plant located on the Paraná River, straddling the border between Brazil and Paraguay. It is a joint venture between the two countries, established by the Itaipú Treaty signed on April 26, 1973, and officially operational since May 5, 1984. The name “Itaipú,” meaning “the sounding stone” in Guarani language. Itaipú Binationa produced more than 3,094,078 GWh since it began operations in 1984.
Financial report breakdown
In the first six months of 2025, the plant produced 37,270 gigawatt-hours (GWh) of electricity. According to the Entity’s Financial Directorate report, between January and July, US$150 million in royalties and US$110 million in energy cession payments were remitted to Paraguay’s Ministry of Economy and Finance (MEF). ANDE received US$43 million in profits and compensation for administration and supervision costs.
In July alone, Itaipú Binational’s payments included US$20 million in royalties and US$12.5 million for energy cession. ANDE received US$1.5 million in compensation, bringing the total for the month to US$34 million. Itaipú reported these figures.
Allocation of Itaipú Binational transfer funds
A portion of the royalties funds the national budget (Presupuesto General de la Nación or PGN). A significant amount is also transferred to departmental and municipal governments by the National Treasury. These contributions from Itaipú, as outlined in Annex C., support crucial programs, investments, and public works.
Examples of projects funded include school meals, school renovations, healthcare centre improvements, and road infrastructure development. The energy cession compensation funds are channelled into the National School Feeding Fund (Fondo Nacional de Alimentación Escolar, or Fonae), and are also distributed to municipalities and regional governments, according to national legislation.
Itaipú’s payments to ANDE guarantee predictable funding for the company’s investment plans. This ensures the provision of a high-quality electricity service across Paraguay, states the government.
