The presidents of Brazil and Paraguay have signed a contract for the expansion of the Itaipu hydropower plant on the Parana river which forms part of the border between the two countries. The expansion will involve the installation of two new turbines at the station.

Itaipu is the largest hydropower plant in the world, with a generating capacity of 12 600 MW from its 18 existing turbines. Construction began in 1974 and the 18th unit was installed in 1991.

The addition of two more 700 MW units will expand generating capacityto 14 000 MW. The output from the plant is split equally between Brazil and Paraguay; the plant supplies virtually all of Paraguay’s electricity and the surplus is sold to Brazil.

The new turbines will be installed by a consortium, part of which is Voith Siemens Hydro. The latter will provide half of the turbines and generators. Work at the site started in July 2000, following the issuing of a letter of intent, and is expected to be completed in 2004.