Paraguay and Brazil inaugurate new international bridge on the Bi-oceanic Route

RIO DE JANEIRO, BRAZIL – Paraguay, and Brazil officially inaugurated the construction of the international bridge that will facilitate the Bi-oceanic Route, despite the last-minute absence of the Brazilian President Jair Bolsonaro.

The announced meeting between him and his Paraguayan counterpart, Mario Abdo Benítez, in the town of Carmelo Peralta (north of the country), was to be held at 10.00 a.m. (13.00 GMT) on Monday but was delayed until its later cancellation when it was realized that Bolsonaro’s plane could not land due to weather conditions.

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The Paraguayan president said in his speech that “in the first days of January his presence would be rescheduled” since, he considered, this work “is a bond of friendship” between both countries and Bolsonaro “wants to be here” to “install the cornerstone”.

The presence in this town of the Paraguayan Chaco of the local president and the governor of Mato Grosso do Sul, Reinaldo Azambuja, in front of all the press summoned to the event, led the authorities to hold a protocol ceremony, as announced.

The international bridge that will link the towns of Carmelo Peralta, in Paraguay, and Porto Murtinho, in Brazil, will serve the Bioceanic Route, a project that aims to connect the Brazilian port of Santos, on the Atlantic, with two Chilean terminals on the Pacific (Antofagasta and Iquique), through Paraguayan and Argentinean territory.

The meeting between Jair Bolsonaro and Mario Abdo Benítez was eagerly awaited since, in addition to this road ceremony, it was expected that both would bring closer positions on the energy tariff of the Itaipú dam by 2022.

Paraguay aims to maintain Itaipu’s electricity tariff in 2022, while Brazil seeks to reduce prices.

Dissent has been going on for several months on this point. However, Paraguay’s foreign minister, Euclides Acevedo, has stated on more than one occasion that his country’s position is “invariable”, so they hope that Brazil will end up giving in on its position regarding energy.

Paraguay understands that maintaining prices can benefit both parties and expects good signals from its neighboring country.

Brazil, meanwhile, bases its position on clauses of the so-called Annex C of Itaipu’s constituent treaty, which establishes the division of energy from the dam and which, in turn, will have to be renegotiated in 2023, when it will be 50 years since the signing of the agreement.

This annex establishes that each country receives 50% of the energy and must sell to the other partner it does not use. Still, Paraguay satisfies its demand with almost 10% of Itaipu’s electricity, so the rest ends up in Brazil and at below-market prices.

Both presidents will meet virtually in a few days since Brazil is organizing the Southern Common Market (Mercosur) Summit on Thursday, 16, and Friday, 17.