Itaipu Dam Agreement

Itaipu Dam Agreement

The Brazilian and Paraguayan governments have suspended a controversial agreement on the 14 GW italy hydroelectric power plant. The Paraguayan government wanted Brazil to support the termination of the treaty. However, the Brazilian government did not accept it and wanted the cancellation to come exclusively from Paraguay. To support the action, according to the government`s interlocutors, this would mean that the agreement negotiated in May would be detrimental to Paraguay. An important diplomatic agreement was reached with the signing of the Acordo trio by Brazil, Paraguay and Argentina on 19 October 1979. This agreement set the permitted flow levels and defined the changes that could be made because of the different hydropower companies in the watershed that was divided by the three countries. In 2009, Brazil agreed to pay Paraguay a fairer price for energy and also allowed it to sell electricity directly to Brazilian companies and not through Eletrobras. The so-called secret agreement is in the process of reversing this authorization. But after the agreement was suspended, the opposition gave up on continuing the impeachment process. The agreement became public in July, when THE head of the ANDE, Pedro Ferreira, refused to sign it, and accused Mr. Abdo Benétez of “high treason”. He and Paraguay`s foreign minister, who also resigned along with three other officials, told prosecutors that a “parallel negotiation” was underway to sell power exclusively to The Brazilian energy group Leros. A politician from Brazilian President Jair Bolsonaro`s party has visited Paraguay three times on behalf of Léros.

Paraguay on Thursday (1) signed a document that repeals the bilateral agreement that favors Brazil in the energy contraction of the Itaipu dam, thus protecting Paraguay`s President Abdo Benitez from impeachment proceedings. The two countries must now renegotiate the power that Paraguay should buy by 2022. The deal was only revealed by the press last week and it is reported that Paraguay will cost about $300 million more over the next three years, according to the country`s lawmakers.

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