On the verge of closing the first quarter of the year, the rate that will govern Itaipu in 2022 remains undefined. Brazil and Paraguay maintain their respective positions and meanwhile, large-scale social expenses are not covered, including the second bridge between the two countries.
Paraguay maintains its position of freezing the energy rate at USD 22.6 Kw/month during 2022, under the slogan of emphasizing socio-environmental expenses and allocating them to strategic investments, in addition to having an optimal prelude to the revision of Annex C.
For its part, the Brazilian position is also strong and consists of reducing the rate to USD 18.60 Kw/month, taking Annex C as the legal basis, which contemplates this reduction, by reducing the debt, which this year falls 600 millions of dollars.
“We are looking for positions that maximize the interests of both parties, in order to find a way out” explained Itaipu’s director, Gerardo Blanco, in an interview with radio Universo 970 AM – Nación Media.
He acknowledged that while the delay continues, the smaller social expenses remain, but not the large-scale ones such as infrastructure works, including the second bridge that unites both partners.
He added that the execution of the large components and financing packages depend on the definition of the rate.
Due to this, an environment of uncertainty is generated and the operational part of the company is complicated, in regulatory and procedural terms, due to the impossibility of invoicing and depending exclusively on advances from purchasing entities.
The attempts to define the 2022 rate date from October 2021, however, there was no agreement until now. However, the next meeting cannot take place in March.
