Brazilian President Luiz Inacio Lula da Silva congratulated Fernando Lugo on his presidential election victory on Tuesday despite an energy price dispute between Brazil and Paraguay.
Lula said in a statement that Lugo can rely on support and friendship from Brazil. The Brazilian president also made a phone call to Lugo, but the two didn't touch on the re-negotiation of prices paid by Brazil for energy produced by the Itaipu hydroelectric power plant.
Lula is expected to meet Lugo before his investiture on Aug. 15to discuss the price issue, which was part of Lugo's campaign platform. The president-elect regards the price paid by Brazil as unfair saying it does not match that of the international market.
Located on the Parana River along the Brazil-Paraguay border, Itaipu remained the world's largest hydroelectric power plant until China's Three Gorges Dam was completed in 2006. Some 45 percent of its output is sold by Paraguay to Brazil, which also receives another 50 percent as it is as an associate in the plant.
Brazil's Mining and Energy Minister Edison Lobao said earlier Tuesday that the price paid by the country to Paraguay was fair, as it was the one used as reference in the Brazilian market. He added that there was no need to renegotiate the Itaipu agreement or increase the price.
On Monday, Brazil's Foreign Minister Celso Amorim said the government was open to making the rules of payment to Paraguay more flexible, but he stressed that it did not mean any change in the agreement held by the two countries.
Source:Xinhua
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