Lula meets Paraguay’s president-elect to discuss revision of contract for Itaipu hydroelectric plant
On Friday, Brazil’s President Luiz Inácio Lula da Silva is set to meet Paraguay’s President-elect Santiago Peña at the Alvorada Palace.
This encounter marks their second bilateral meeting this year, following Peña’s electoral victory in his home country.
The primary agenda is the discussion of the Itaipu Binational Hydroelectric Plant treaty revision.
After 50 years, both countries are revising the agreement that sets the project’s financial framework and electricity services.
Paraguay seeks permission to sell its surplus power to other countries — the current agreement allows only Brazil to buy it — and to increase the tariff.
The binational company has an annual budget of around USD 3.5 billion, almost 70% of which was used to pay off Paraguay’s debt from the hydropower plant’s construction on the Paraná River.
Treaty revision became possible after this debt was settled in February this year.
Key Facts
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— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
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