Paraguay River 98% of the country's inhabitants. As such the river is considered perhaps the key geographical feature of the country with which it shares its name. Some after flowing through the middle of Paraguay, at the confluence with the Pilcomayo River and passing the Paraguayan capital city, Asunción, the river forms the border with Argentina, flowing generally south-southwesterly for another before it reaches its end, joining with the Paraná River. The Paraguay River is the second major river of the Rio de la Plata Basin, after the Paraná River. The Paraguay's drainage basin, about , covers a vast area that includes
Economy of Paraguay hydropower plant, Yacyretá, with Argentina. Paraguay uses only a small portion of the energy it generates through Itaipú and Yacyretá. In 2002 Paraguay generated more than 48 billion kilowatt-hours of energy. It consumed only 2.5 billion kilowatt-hours while exporting 45.9 billion kilowatt-hours. Paraguay will have even more hydroelectricity to export when planned new turbines are installed at Itaipú and the Yacyretá dam is fully completed. In 2007 electricity production rose to 70 TWh, and exports reached 64 TWh which put Paraguay in second place worldwide as an exporter of electrical power (And in the first place as a net exporter