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Brazil to increase power supply to Uruguay

(Agencies)
Updated: 2009-03-11 11:30

BRASILIA -- Brazil and Uruguay agreed on Tuesday to build a new electricity interconnection line in order to guarantee the power supply to Uruguay, local media said.

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The project, agreed on by Brazil President Luiz Inacio Lula da Silva and his Uruguayan counterpart Tabare Vazquez during a meeting here, will help to increase electricity supply from Brazil to Uruguay to 500 megawatts instead of the current 300 megawatts.

The line, which will go from San Carlos in Uruguay to Candiota in Rio Grande do Sul state of Brazil, is to be built even without funding from the Common Market of the South (Mercosur), Lula said.

Lula praised the ties between the two countries, describing them as "at excellent moment."

The two leaders also discussed issues of common concerns such as  Mercosur and the integration of the South American Union of Nations (Unasur).

Uruguay is currently facing problems on electricity supply due to the severe drought in the country.