Marcela Rebelo
Reporter - Agência Brasil

Montevideo (Uruguay) - This morning (9), president Luiz Inácio Lula da Silva partícipáted in the opening session of the 29th Mercosul Summit Meeting. He arrived in the Uruguayan capital late yesterday afternoon and had a meeting with the president of Paraguay, Nicanor Duarte.

According to the Brazilian minister of Foreign Relations, Celso Amorim, who is also in Montevideo, two agreements have already been signed with Paraguay. The first agreement has to do with the construction of a bridge between the two countries. The project should cost around US$ 50 million, and, according to Amorim, the Brazilain government will pay for the cost.

Amorim explained that the other agreement involves a long-time Paraguayan demand. According to Amorim, the Brazilian government will contribute with another US$ 21 million annually to the Paraguayans for the electricity generated by the Itaipu hydroelectric plant.

Regarding Venezuela's entry as a full-fledged member of the Mercosur, Amorim commented that it will be "important and will help balance" the bloc. There is an expectation that Venezuela will emerge from this meeting as a "member in the process of adhesion" The president of Venezuela, Hugo Chavez, told reporters yesterday that he already "considers himself part of the Mercosur."

On his trip to Montevideo, president Lula was accompanied by the ministers of Development, Inudstry, and Foreign Trade, Luiz Fernando Furlan, and of Mines and Energy, Silas Rondeau.

Translation: David Silberstein