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December 13, 2021
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Intermediate room in rate negotiation

Intermediate room in rate negotiation

Abdo Benítez, President of the Republic, held a meeting with his counterpart Jair Bolsonaro from Brazil. At the meeting that took place in the neighboring country’s Planalto Palace, they discussed bilateral aspects related to Itaipu, as well as economic agreements and infrastructure projects in execution.

During the subsequent press conference, he highlighted that progress had been made on the revision of Annex “C” of Itaipú, but he did not specify what they were.

“We have enormous results on organized crime. We have expelled many people required by the Brazilian Justice. We have achieved unprecedented blows to drug trafficking. We have put their assets at the service of society, “he said.
He finally pointed out that in the work meeting they were in an intermission room.

THE INTENTIONS
Fabián Cáceres, former ANDE technical manager, pointed out that yesterday’s meeting was one more step towards the revision of the treaty.

He stressed that Brazil’s intention is for the tariff to be reduced, since that energy is destined for the southwestern part of the country where the industrialists operate.

“It was a promise from the Government that was not given in 2019 and continued until today. The general director of Itaipu on the Brazilian side announced that the rate for 2022 will go down, and the revision of Annex ‘C’ will happen after 2023, “he said.

The reason why they want the revision of Annex “C” to be in 2023 was for two reasons. The first because in 2022 they will have presidential elections. And secondly, they don’t fully define the points they want to address in the negotiation.

“Also, our commission never said what our line will be. It is made up of people who defended the bilateral act. There are doubts about their positions. A line and a base were never laid. The Paraguayan position never transcended ”, he mentioned.

OFFICIAL DELEGATION
The Paraguayan official delegation, led by President Mario Abdo Benítez, is made up of the Minister of Foreign Relations, Euclides Acevedo; the Minister Advisor to the President of the Republic in Strategic Affairs, Ambassador Federico González; the Paraguayan general director of the Binational ltaipú, Ambassador Manuel María Cáceres; as well as the head of the National Electricity Administration, Ing. Félix Sosa.

BILATERAL ACT
There is a negative record regarding Itaipu negotiations with Brazil. The most important occurred at the end of May 2019. The origin of that secret bilateral act was that Brazil wanted to impose on Paraguay the contracting of more guaranteed energy (the most expensive) in such a way that surpluses exceed more and Brazil can decrease the average cost of the fare. Which he did not achieve. Paraguay had a preference in the use of excellent energy. Brazil backed down at the risk of impeachment against Abdo Benítez.

This was hardly known to public opinion, after the resignations of Pedro Ferreira, then head of ANDE, and Fabián Cáceres, former technical manager of the institution.



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