Brazil Offers Paraguay a Loan But Not a Better Deal on Electricity

Electricity Paraguayan president Fernando Lugo, who is visiting Brazil, and his counterpart host Brazilian Luiz Inácio Lula da Silva ended Thursday evening, May 7, their first private meeting without any statements or having signed several bilateral agreements, which were ready to be stamped.

Brasí­lia diplomatic sources said conversations "would continue during the official dinner" and a joint press conference has been scheduled for Friday morning before the two leaders leave for Campo Grande where they will inaugurate a tourist train that tours the world famous Pantanal lowlands in the heart of South America.

The meeting lasted for over two and a half hours and the main issue of the bilateral agenda was the differences over the world's largest operational hydroelectric dam and shared by both countries, Itaipu.

Paraguay wants a review of the Itaipu 1973 treaty including prices and distribution of power generated. President Lugo made one of the focal points of his electoral platform.

Paraguay only absorbs 5% of the energy generated by Itaipu and wants a better deal since by contract it must sell the surplus to Brazil at 1973 prices. Brazil recalls that they paid for the huge dam and Paraguay must reimburse its share. The treaty can only be reviewed in 2023 and the whole issue has become highly sensitive for both sides.

Following the meeting at the Itamaraty Palace both leaders were supposed to sign several bilateral agreements for which all was set, the table, documents, pens, but the ceremony was suspended with no reasons given.

Earlier in the day the official Brazilian news agency released an interview with Energy Minister Edison Lobão who said the Brazilian government was willing to loan Paraguay up to US$ 2 billion for financing infrastructure and social programs.

The amount could include up to 500 million USD for the construction of transmission lines between the Itaipu hydroelectric facility and the Paraguayan capital, Asuncion.

Lobão said Brazilian officials were willing to listen to Paraguayan demands but didn't offer any guarantees on debt reductions or electricity rate increases proposed by Paraguay.

"Paraguay currently receives 600 million USD more annually in energy than before Itaipu's construction and has received 4 billion USD in royalties" said Lobão. "Itaipu has been of great benefit for Paraguay and not a detriment."

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Ambitious Biodiesel Plans

Brazil’s investment in biodiesel production is expected to reach US$ 515 million in 2008, ...

New Leadership and Gold Findings in Tapají³s, Brazil

Brazauro Resources announced the appointment of Mr. Elton Pereira as senior manager of Brazauro’s ...

Danisco Plants Itself in the Heart of Brazil’s Citrus Area

Danish food company Danisco has decided to carry out its largest investment in organic ...

After 8 Inmates Are Killed, Some Decapitated, UN Asks for Brazil Reforms

While assessing the recent outbreaks of violence that took place in several prison facilities ...

Brazil Gets Top Ranking in Murders, Which Are 5% of All Deaths

Brazil holds the first place in violent deaths in the comparative study carried out ...

Ecologically Friendly Tiles from Brazil

To expand and consolidate their presence in the national and international markets, the company ...

Brazilian Waxing Lead American Entrepreneur to Wax Financial

The latest buzz from the streets of Madison Avenue to the beaches of Brazil ...

Brazil Creates Center to Improve Leather and Cut Waste

Brazil is investing in technology to improve the quality of the leather produced in ...

Brazilian Airline TAM Now Flies Daily Non-Stop Rio-Miami

Beginning September 19, Brazilian airline TAM will start a new daily direct flight linking ...

Brazil’s Gol Next Flight: Uruguay

Brazilian no-frills airline Gol will be flying to Uruguay and Paraguay beginning in the ...