Paraguay negotiates strategic vision for Itaipu with Brazil

The Paraguayan government seeks a long-term strategic vision for Binational Itaipu, according to statements from the president. The negotiation goes beyond the energy tariff and Annex C of the Itaipu Treaty, encompassing other points of the original agreement.

In May 2024, Brazil and Paraguay closed an agreement that brought resources for socio-environmental spending in the following three years — the same volume that had been invested in the previous 30 years, according to the president. These resources financed projects such as 600 patrols, 250 ambulances, construction of hospitals and schools, as well as the 1,000 Plan for road improvements in Paraguayan districts.

The president stated that current negotiations face additional complexity due to the Brazilian electoral process, with presidential elections scheduled for October 4. Nevertheless, he maintains optimism about a beneficial agreement for Paraguay. "Paraguay owns half of Itaipu," he emphasized, indicating that the country benefits from both higher tariffs and lower tariffs — the former generating more social revenue, the latter attracting investments.

The president also mentioned that the discussion includes additional points of the treaty that he considers necessary to review, beyond Annex C which establishes financial conditions after full payment of the debt.

He reflected on the historical legacy of Itaipu, built 50 years ago with limited technology and still functioning as a "marvelous work." He questioned what the legacy of current negotiations will be five decades from now.

Source: La Nación