Brazil’s Mines and Energy Minister, Alexandre Silveira, traveled to New York and shared his optimism about the Itaipú dam talks with Paraguay.
Many anticipate rapid and smooth progress.
Both nations plan to revisit the terms of Annex C soon. This agreement has provided Brazil with Paraguayan energy for 50 years.
Globally, Itaipú ranks among the leading hydroelectric plants.
Silveira emphasizes the positive dialogues currently in progress. He holds great value in maintaining strong bonds with neighboring countries.
These strong relationships guarantee a consistent energy supply.
Brazil and Paraguay signed the Itaipú Treaty on April 26, 1973, which calls for a review. On August 13, Annex C hit its 50-year review mark.
This document outlines both financial aspects and electrical services.
Both countries receive an equal share of the energy produced. They sell any surplus energy to their partner at discounted rates.
With a capacity of 14,000 megawatts, Itaipú only trails behind China’s Three Gorges and Baihetan dams.
Background
The Itaipú Dam proudly stands on the Paraná River. Brazil and Paraguay jointly constructed it. The building phase kicked off in 1975 and wrapped up in 1982.
The power it generates benefits both nations.
Enio Verri, the Brazilian director general of Itaipú, estimates that reviewing the Annex C in the Binational Treaty will span 2-3 years.
After the new Paraguayan government‘s inauguration, negotiations began on August 13.
Stakeholders view this review as pivotal, as it will shape Itaipú’s resource allocation in upcoming years.
These resources once funded the dam’s construction payments, with the final installment settled in February.
Reports suggest the plant amasses a yearly surplus of about US$2 billion.
A debate continues over the best use of these funds.
Experts believe the process may outlast the initial 2-3 year projection.
Itaipú, as a two-nation venture, adheres to its distinct set of rules.
Six representatives split evenly between Brazil and Paraguay, manage its operations, reaching a consensus for every decision.
Throughout these discussions, Itaipú’s operations will remain unchanged.
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