Alto Parana Department

Alto Parana is Paraguay's economic engine—the eastern border department where Ciudad del Este faces Brazilian Foz do Iguacu across the Parana River, and where the Itaipu Dam generates the hydroelectricity that powers both nations. This geographic position transformed Alto Parana from forested frontier into the department that defines Paraguay's insertion into global markets.

Itaipu's 14,000 MW installed capacity—split equally between Paraguay and Brazil—provides nearly 90% of Paraguay's electricity while generating over $500 million annually in export revenue from surplus power sold to Brazil. The May 2024 renegotiation secured Paraguay nearly double the previous price per kilowatt-hour, reflecting successful diplomatic leverage over shared infrastructure.

Ciudad del Este emerged from Itaipu's construction as Paraguay's second-largest city and a re-export hub that exploits price differentials with Brazil's protectionist economy. Electronics, consumer goods, and products from global suppliers transit through Ciudad del Este to Brazilian buyers seeking to avoid import duties. This created commercial prosperity alongside concerns about contraband and informality.

Soybean production dominates Alto Parana's agricultural landscape, with Brazilian-style mechanized farming replacing forest that covered the department within living memory. The transformation pivoted Paraguay's political economy eastward, toward the Brazilian border. By 2026, expect continued Itaipu revenue under improved terms, soybean production responding to global prices, and Ciudad del Este maintaining its re-export function despite periodic Brazilian enforcement campaigns.