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Itaipú: Ex-official warns of lack of transparency in Annex C negotiation
🇵🇾 Paraguay /Economy & Trade

Itaipú: Ex-official warns of lack of transparency in Annex C negotiation

From ABC Color · (1d ago) Spanish Critical tone

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Paraguay faces uncertainty regarding the renegotiation of Annex C of the Itaipú Treaty, with an ex-official warning of a lack of transparency.
  • Concerns include potential losses in socio-environmental funds and the cancellation of a 2007 operational agreement, which could weaken the national power company, ANDE.
  • While a reduced electricity tariff could benefit industry, the country must also address growing energy demand and ensure transparency in negotiations.

As Paraguay approaches the 53rd anniversary of the Itaipú Treaty, a cloud of uncertainty hangs over the crucial renegotiation of Annex C. Ing. Eduardo Viedma, a former member of the binational entity's Administrative Council, has voiced significant concerns over the "hermeticism" surrounding these negotiations, warning of potential pitfalls for the nation.

There is a marked lack of official information about the current state of negotiations between Paraguay and Brazil.

— Ing. Eduardo ViedmaExpressing concern over the transparency of the Itaipú Treaty Annex C renegotiations.

Viedma argues that the review must extend beyond just Annex C. With the dam's construction debt fully settled, he believes it's imperative to re-evaluate the expansion of energy generation to meet the escalating demands of both Paraguay and Brazil. He stresses the urgency for negotiators to act swiftly and transparently, noting the "almost null" flow of information from the executive branch, despite high expectations.

For the specialist, the review must not be limited solely to Annex C, since the debt for the construction of the dam is fully paid off, which forces a rethink of the expansion of generation to cover the growing demand of both countries.

— Ing. Eduardo ViedmaHighlighting the need for a broader scope in the Itaipú Treaty renegotiations.

The potential reduction in the electricity tariff, a key point of discussion, could indeed be a boon for industrial development, potentially dropping to around US$10 per kW-month based on operational costs alone. However, Viedma cautions that this benefit comes with a significant trade-off: a drastic reduction in socio-environmental funds, which are vital for numerous government projects. Furthermore, the impending cancellation of the 2007 Operational Agreement, which has provided ANDE with advantageous access to Brazilian power reserves, could leave the national electricity company in a precarious position. This complex negotiation demands careful consideration to balance industrial needs with national interests and financial stability.

The expectation is high, but the flow of data from the Executive is almost nil.

— Ing. Eduardo ViedmaCriticizing the lack of official communication regarding the negotiations.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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