Itaipu: Brazil Offers US$ 200 Million, Paraguay Wants US$ 1.8 Billion

Itaipu The government of Paraguay, which is a poor country, is fighting for a fair market price for its share of energy generated at Itaipu, South America's largest hydroelectric dam shared with Brazil. "Somehow we are subsidizing Brazil's energy", said Paraguayan president Fernando Lugo in an interview with the Spanish daily El Mundo.

Lugo said that Paraguay's aspiration (one of Mercosur junior members) is to multiply by 16 the annual US$ 109 million received from Brazil for the Itaipu energy.

"Brazil has offered US$ 200 million but we expect anywhere between 1.2 and 1.8 billion US dollars" insisted President Lugo. "We would like a fair market price, we're a poor country, and we need the resources".

The energy from the gigantic Itaipu dam built in the seventies is virtually all absorbed by Brazil, with only 5% going to Paraguay. The other 95% is consumed by energy short Brazil which has a purchase priority and insists in paying prices agreed at the time the project was built.

"If necessary we'll take the issue to wherever necessary, although first we must exhaust all the bilateral mechanisms," said Lugo to El Mundo in direct reference to several bilateral committees addressing the dispute.

Lugo revealed that when his last meeting with Brazilian President Luiz Inácio Lula da Silva he put a one year timetable to reach an agreement, supported by both sides, on Itaipu.

"Since then we have advanced on investigations into past irregularities. Currently most of the energy is sent directly to Brazil, we are not even sure how much energy. We need a fair price and the free availability of energy so we can re-route if there's no agreement with Brazil," pointed out Lugo.

A fair price for the Itaipu energy was one of the former Catholic bishop electoral promises on taking office six months ago. A similar situation occurs with a smaller hydroelectric dam shared with Argentina, Yaciretá.

Regarding his six months in office the president admitted that "we still see indigenous people in the street in miserable conditions, landless peasants and homeless", but the "state can't provide for all, there are simply not enough resources."

"I went into politics not to cheat on people or to become a demagogue," said Lugo who admitted that 40% of Paraguayans live below the poverty line and another 20% in conditions of indigence.

"We are hopeful that with international support we can bring down those appalling numbers," said Lugo.

As to his religious background Lugo confessed it was hard to abandon the church for politics, "but the church is one of the most trusted institutions in Paraguay."



  • Show Comments (6)

  • Ric

    We need the resources, end quote
    Sounds like Owens Valley, Mono Lake. A deal is a deal, unless you have the legal resources to renegotiate it in court. Stop whining.

  • João da Silva

    [quote]i suggest you call your daughter tonight and tell her you forgive her and that you are keeping her in the will and that you love her . my god, keeping her out of the will and not telling her is one cold stiff creepy thing….dont let it happen ch c[/quote]

    I think he took your fraternal and friendly advice , decided to call her and is still over the phone. 😀

  • asp

    its time for you to grow up , ch c….
    its time for you to stop taking your bitter personal life out on internet forums, and transfering it into a hate filled obscesition for brazil , and facing up to the personal things that are eating away at you.your issues with your daughter. its painfully obvious how its playing out on here. if you think me telling you to open up your heart and tell your daughter you love her, is some negative criticism, that is just a sign of your cold reality frame of mind…

    yeah , look at the statement, and see what im really saying.why i can say to you , as you tried with all your might and cliched analasys of usa policy , to make me angry , i say , here, take the machete and slice away,and ill say dont forget the tuskegee experiment and the whool blankets with small pox given to the indians.because i said , yeah the usa is dirty, but, so is every body else, including the swiss who received all that gold from the holocaust victoms . now that is slime for you , ranks up there with all of them. and, by the way, these brazilians you always call liars and cheaters….they were over there fighting hitler. they came a long way, to fight tyrany at its worst while you all sat back and collected holocaust gold….so, we are all dirty ch c

    i suggest you call your daughter tonight and tell her you forgive her and that you are keeping her in the will and that you love her . my god, keeping her out of the will and not telling her is one cold stiff creepy thing….dont let it happen ch c

  • ch.c.

    You know what junkie ?
    I laugh !

    You criticize me, that is very fine.


    Why dont you re-read your own wordings with YOUR STATS
    March 16
    well, great analysis , jack , but you left out the other half of the story….
    etc etc etc

    Is your middle name IDIOT ?

    You may as well re-read the other comments YOU MADE so many times.

    Enjoy you re-readings of such an IDIOT !


  • asp

    you are so one sided agianst brazil, i dont trust anything you say about it
    you are so obcessed on here against brazil its pathetic. you have lost all credibility about it. its one thing to bring in your statistics, oh you are really great at that, it is your thing, but you then throw in all the bullshit that all brazilians are liars cheaters etc and start saying the same things over and over and statistics can be manipulated anyway

    you are obviously holding a bitter pill inside yourself.statistics are only 10 percent of a picture. the rest is the real life experiance. when i went to new york in 78, all the statistics were saying it was a murder capital and crime capital and was economicly dying. well, i went anyway and would nt trade those 8 years for anything .i learned so much about life and business and people…the statistics just didnt mean anything

    same with brazil…statistics just arnt the whole story , they are a small real part , but just only a small part. you are taking your own personal family disfunction and taking it out on brazil. and it is a shame. i pity you cant open up your heart to your daughter, because your hate and bitterness towards brazil is obbiously rooted in your relationship to your daughter , who lied to you , and cheated you.

    you have to let go of your bitter feelings for your daughter. she is your blood. its not like a wife you seperate from. you need to put her back in your will and forgive her. you need to open your heart to her and here is how…

    tell her you love her, and tell her you forgive her . leaving her with little or nothing after you die only will put the most coldest stone in her heart. that is some cruel and vindictive action…life is mundane and statistics and money or the lack of it, but love and experiances is living ,and family is more important than any money or statistics….you need to open up your heart to your daughter and let go of your bitterness…you wont be lashing out ridiculasly at brazil and its people , so much if you resolve your personal family issues. i mean it really gets tired your never ending bashing and genreralisations about brazil

  • ch.c.

    The government of Paraguay, which is a poor country, is fighting for a fair market price for its share of energy generated at Itaipu,
    Brazil doesnt know what fair means….when they must pay !

    They just say that developed nations are unfair to charge…the free market prices.

    Then Brazil should also pay AT LEAST the free market prices….and then still be unfair…as you criticize developed nations.

    😀 😉 😀 😉 😀 😉 😀 😉 😀 😉

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