Itaipu: Brazil already assisted a half of Paraguay claims

08/07/2009 06h30

The Brazilian government already transferred the partner, from the construction of the plant, 5 billion dollars.
Itaipu Binational Brazilian general director, Jorge Miguel Samek, affirmed on Tuesday (30) that three of the six mains claims of Paraguay in relation to Power station hydroelectric were already solved.

According to him, he already settled an agreement about the demands of larger transparency about the financial administration of the plant, the co-administration and the accomplishment of complemented works foreseen in the Treaty of Itaipu, but that still were not accomplished. These are less controversial points among the Brazilian partner’s demands in Itaipu.

Paraguay still presses the Brazilian government for tariffs revision paid for spare energy that transfers Brazil, for the auditing in debt and freedom to market its part of the energy generated in Itaipu.

Samek participated on Tuesday, of public audience to discuss the divergences between Brazil and Paraguay on Itaipu, accomplished by the commissions of Foreign Relations and National Defense and Mines and Energy.

Free commercialization of the energy
In the treaty, signed by the two countries in 1973, each one of the parts is entitled to 50% of the energy produced by the plant, but it is forced to sell its surplus to the other partner. In agreement with the general sub secretary of South America of Foreign Relation Minister, ambassador Enilo Cordeiro, the Paraguayan negotiator argue that, with the free readiness, the country could obtain additional income up to 1.5 billion dollar (R$2.92 billion) annual.

In his opinion, however, this is a “chimerical” calculation, because there are at least no transmission lines for the other possible buyers. Besides, Enio Cordeiro explained “the demand of other countries of South Americ is seasonal, and the only country that offers safe market is the Brazil, even for force of the own treaty.”

Brazilian population paid the bill
As the construction of the hydroelectric power station was totally financed by the Brazilian government, the ambassador considers very difficult to convince the population, that paid the bill, to transfer the energy generated to outsourcing.

The president of Foreigner Committee and National Defense, representative Severiano Alves (PDT-ba), believes that the Parliament would not accept renegotiations to harm the Brazilian population. "Today Brazil is much more nationalist than before, and any alteration that brought damage would not pass here", he sustains.

As alternative, Brazil examines the possibility to allow to the energy company of Paraguay - National Administration of Energy (Ande) - to participate at the Brazilian market of commercialization of energy.

Price Formation
Enio Cordeiro also affirmed that the Brazilian government considered impossible to assist the Paraguayan claim of linking the price paid for the transferred energy of Itaipu to the value of petroleum.

Jorge Miguel Samek increased that the president's of Paraguay accusation, Fernando Lugo, that Brazil pays only 2.81 dollars (R$ 5.48) for megawatt/hour for the energy transferred was solved already. "President Lugo already understood that it is not the price", he affirmed.

Samek explained that the Brazilian government already transferred the partner, from the construction of the plant to March of this year, 5 billion dollars (R$ 9.75 billion). Besides the payment for the quilowatt/hour of the spare energy that buys of Paraguay, Brazil still pays to the neighboring country 120 million dollars (R$ 234 million) annual in transfer tax.

Actually, that accusation elapses of the fact that, in spite of Brazil to pay, on average, 45 dollars for the received energy of Paraguay, the neighboring country receives only 2,81 dollars (R$ 5,48). The remaining is kept by the Brazilian government for reduction of the debt Paraguayan remainder of the construction of the plant.

Paraguayan debt
The Paraguayan debt is another point questioned by President Fernando Lugo. According to Enio Cordeiro, the Paraguayan negotiators complained of the legitimacy of the debits. "They use the argument that the situation today is of exclusive responsibility of Brazil, because it elapses of the Brazilian government's" decisions, it explained.

"This accusation, Brazil cannot accept", increased the ambassador. As alternative, the Country proposed, for instance, the constitution of a regional bottom to stimulate investments in the productive section of Paraguay. One of the options would be the construction of transmissions line of Itaipu for Assumption, what would make possible the increase of the consumption of the Paraguayan quota of energy produced in the binational.

The plant of Itaipu has 14 thousand megaWatts of installed potency. Nowadays, Paraguay consumes only 5% of its quota, what represents 91% of the energy expense of the country. In the Brazilian market, the energy of the plant answers for 20% of the provisioning. The budget of the company for this year will be of the order 3.3 billion of dollars.

Report - Maria Neves
Edition - Regina Céli Assumpção

Translation – Thiago Capatti - Grupo Solucion – SP Language Center Treinamentos e Traduções Ltda