Brazil and Paraguay keen on concluding Itaipu agreement
"After fulfilling the initial objective of building, operating, and fully repaying the debt of Itaipu as per the agreement, today we must focus on shaping its new role for the next 50 years," stated Paraguayan President-elect Santiago Peña. This statement came after his meeting with Lula at the Alvorada presidencial palace on Friday (Jul. 28) to discuss the renewal of the Itaipu hydroelectric plant agreement, jointly constructed by the neighboring countries.
The Paraguayan president emphasized the objective of creating a shared vision between the two countries regarding the future of the hydroelectric plant. As per the Itaipu Treaty signed in 1973 by the governments of Brazil and Paraguay, Annex C, which sets the financial foundations for the commercialization of energy from the binational hydroelectric plant, must be revisited after 50 years. "I am highly optimistic that the negotiations can be swiftly concluded," stated Peña.
Santiago Peña is confident that it is feasible to uphold the existing conditions for Brazil's purchase of surplus energy. Presently, each country has an equal entitlement to half of the energy generated by the plant, yet Paraguay utilizes only approximately 15 percent of the total. As per the treaty, Brazil has a preference for purchasing surplus energy from Paraguayans.
"Paraguay is pursuing a developmental policy, not a rentier one. Our aim is to develop our country, considering the aspirations of our youth seeking employment opportunities. We are focused on implementing an economic policy that fosters job creation, with no intention of relocating employment from Brazil to Paraguay," emphasized Peña.
Asymmetries
In March of this year, at the inauguration of the new Brazilian director general of Itaipu, Enio Verri, President Lula highlighted the importance of considering the reality and asymmetries between Brazil and Paraguay, the two partners in the enterprise, while conducting the negotiations of Annex C of the Itaipu Treaty.
During the meeting between Lula and Peña on Friday, the discussions went beyond Itaipu and encompassed a comprehensive agenda of global, regional, and bilateral integration between the two countries. They addressed matters related to cooperation in security, economy, border traffic, and also explored ways to enhance collaboration in regional investments.
Prsident Lula has officially confirmed his attendance at the Paraguayan presidential inauguration ceremonies in Asunción, scheduled for August 15.
