Paraguay Makes Its Case for a Fair Deal with Brazil on Itaipu

Itaipu display Paraguay, which is a landlocked country, will make public in Uruguay and Spain, its claims to neighboring Brazil regarding the energy from South America's largest hydroelectric dam, Itaipu, which it shares with Latinamerica's leading economy.

The presentation before the Mercosur Parliament seated in Montevideo, and the following week in Spain will be done by the Paraguayan representative in the Itaipu dam governing board, Carlos Matero Balmelli.

Paraguay has a six points claim mainly its interest to freely disposing of its share of surplus energy, which currently is entirely absorbed by Brazil.

"I think that somehow the Itaipu case is becoming international, so that Brazil can understand it must be more compromising towards Paraguay's claims," said Balmelli who added that if Brazil "is going to have a regional leadership because of its size, economic power, that nobody questions, it must be more receptive."

Balmelli said "dialogue is valid when it's conductive to the solution of the controversies which generate them; it's not a matter of only sitting down to talk."

Anyhow he said Paraguay was satisfied with the current negotiations in the framework of the bilateral committee named last September by Paraguayan president Fernando Lugo and his counterpart Luiz Inácio Lula da Silva.

Paraguay is also demanding a review of the Itaipu construction agreement dating back to 1973, which stipulates that each country has the right to 50% of the energy and the surplus electricity must be sold to the other partner at cost price.

Paraguay only needs 5% of Itaipu's electricity so the rest ends in Brazil.

Balmelli said that Brazil does not accept modifications to the original agreement, "this is quite clear, Brazil has said so in several occasions." But if Brazil does not admit reviews, "at least we can demand coherence in its application."

"Paraguay is asking to be able to dispose of the surplus energy by selling it to the Brazilian market, and at a fair free-market price," underlined the Paraguayan delegate.

He also mentioned that Brazil has an open energy market with "the other Mercosur members, Argentina and Uruguay simply based on a decree, so why not with Paraguay? Why not with the surplus energy from Itaipu?"

Balmelli said that following the presentation before the Mercosur parliament he will give a conference on the subject in the Casa de America in Madrid, a day after Brazil makes a presentation on its energy system.

"I'll be talking about "Itaipu, integration or hegemony" in Spain said Balmelli who anticipated he will be contacting Spanish energy corporations.

"We need to invest heavily in new sources and particularly in transmission lines, which is our great shortfall," insisted Balmelli.

The Paraguayan delegate will be making the presentations next to his Brazilian counterpart in the Itaipu board, Jorge Samek.

Mercopress

Tags:

You May Also Like

Brazil Market’s 10% Slump Shuts Trade for 30 Minutes. Lula Pans US Casino

Brazil's stock market plunged this Monday, September 29, 334 points or 9,36%, the worst ...

Brazil: Good Economy Gives Lula a Boost

The index of positive evaluations of Brazilian President Luiz Inácio Lula da Silva’s Administration ...

Brazil’s Seu Jorge Makes New York Sing Along

I must say that I wasn’t sure of what to expect when I entered ...

Dengue and TB: A Two-Front Battle in Brazil

Brazil government’s actions to control dengue resulted in a 73.3% reduction in the incidence ...

Brazilian Shoe Exports Are Down 20 Million Pairs. Thousands Protest in Brasí­lia

Three thousand representatives of the Brazilian leather and footwear sector were in BrasÀ­lia to ...

Better Control Brings 14% More Tax Money to Brazil Treasury

From January until May this year, the Brazilian federal government collected, in taxes and ...

Brazil Once Again Tells IMF It Will Not Draw Money

The Executive Board of the International Monetary Fund (IMF) has completed the eighth review ...

Brazilians Go to Dubai’s Gulfood and Make Deals Worth at Least US$ 30 Million

Gulfood 2010, the largest food sector fair in the Middle East, which ended February ...

Goldman Calls “Cowardice” Brazil’s Decision to Keep His Son. He’s Called Bad Dad

"It was cowardice. I have an immense affection for the boy." This was American ...

New Outbreak of Foot and Mouth Disease Hits Brazilian Cattle

Once again, Brazil’s Ministry of Agriculture reports that outbreaks of foot and mouth disease ...