Itaipú transfers to Paraguay drop 9%, energy cession payments fall 30%

Paraguay has experienced a notable decrease in financial transfers from the Itaipú Binacional hydroelectric dam, with a 9.2% contraction recorded between January and July 2026 compared to the same period in 2025. The total amount received by Paraguay during these seven months was US$275 million, down from US$303 million in the prior year, marking a deficit of US$28 million.

The most significant factor contributing to this decline is the drastic 30% reduction in payments for the cession of energy. In the first seven months of 2025, Paraguay's Ministry of Economy and Finance (MEF) received US$110 million for energy cession, but this figure plummeted to US$77 million in the corresponding period of 2026, a loss of US$33 million. This reduction directly impacts crucial funds allocated to the National School Feeding Fund (Fonae) and transfers to municipalities and governorates, which rely on these revenues for social and infrastructure programs.

In contrast to the drop in energy cession payments, revenues from royalties showed a modest increase of 2.6%, with the Paraguayan Treasury receiving US$154 million up to July 2026, slightly surpassing the US$150 million from the previous year. Additionally, disbursements to the National Electricity Administration (ANDE) for administrative charges and profits saw a slight uptick of 2.3%, with the state-owned company receiving US$44 million this year compared to US$43 million in the same period last year. These funds are vital for ANDE's financial stability and its investment plans in the national electricity distribution network.

Analyzing July 2026 in isolation reveals a slight improvement compared to July 2025, with total transfers reaching US$36 million, up from US$34 million. Royalty payments in July were US$22 million (compared to US$20 million in 2025), while energy cession payments amounted to US$12 million (unchanged from US$12.5 million in 2025). ANDE received US$1.7 million in July, slightly higher than the US$1.5 million in the previous year. Despite this monthly improvement, the overall trend for the year shows a significant decrease in critical transfer payments to the Paraguayan state.