THE Itaipu Hydroelectric Power Plant corresponds to a large architectural undertaking with the purpose of obtaining electricity, this construction was constituted by the interest of Brazil and Paraguay from an agreement between those involved in the process.
The water source that drives the turbines is the Paraná River. This is the largest hydroelectric plant in the world, when it comes to power.
The energy generated at the plant is divided between Brazil and Paraguay, Brazil's share accounts for 24% of all energy produced in the country. The distribution of the portion belonging to Brazil is carried out by the Company Furnas Centrais Elétricas S.A.
The negotiation process between Brazil and Paraguay took place in the 60s, when they decided to analyze the possibility of implementing a hydroelectric plant to take advantage of the entire water potential of the region.
In 1970, an international tender was held to grant the right to carry out a feasibility study for the construction, as it was a gigantic work. The winner of the tender was the consortium made up of North American companies IECO and Italian ELC.
After the completion of the international competition, the works began in February 1971, two years later, on April 26, the countries involved in the agreement, they consolidated the Treaty of Itaipu through its signature, which made the use and construction of such a project on the river lawful. Paraná.
Only in 1974, on May 17, was a binational entity established in Itaipu with the purpose of monitoring the construction project.
The concrete construction of the work took place in January 1975. The damming of the waters of the Paraná River took place on October 12, 1982, when the floodgates were closed, operations began on May 5, 1984.
Currently, the energy produced at the hydroelectric power plant accounts for 20% of all energy consumed in Brazil.
The agreement signed between Brazil and Paraguay provides that the surplus production of one of the partners should be preferentially negotiated with one of the project's executors, that is, one of the countries in question.
All energy generated at the Itaipu Hydroelectric Power Plant is divided into two equivalent parts. Paraguay consumes only 5% of its total energy, the remaining 45% are negotiated at cost price with Brazil, to fulfill the signed agreement.
Recently, the former Catholic bishop Fernando Lugo launched himself as a candidate for the post of president of Paraguay, the basis of his proposals was precisely the amount that Brazil pays Paraguay for energy. On April 20, 2008, Lugo was elected president and has since been carrying out offensive measures that aim at a new negotiation with Brazil to stipulate market prices for the sale of energy electric.
One of Lugo's proposals is to carry out a review in relation to the amount paid by Brazil for surplus Paraguayan energy, this is because the Brazilian government pays the cost price to the neighboring country, and not Marketplace.
According to Lugo, the discussions will be held between the two nations, however, if not successful, he will have to appeal to all legal procedures in local, regional and international levels, taking as an example the case of the Panama Canal, where there were changes in the agreement signed between Panama and the States United.
Apparently he wants to seek a diplomatic agreement, however, he makes it clear that if he does not achieve his goals, he will resort to international judicial spheres.
Another point pointed out by Lugo, which he considers important to be revised, is regarding the time of signing the treaty, 34 years, which aims to transfer energy at cost and not at cost. market as it occurs in several countries and products in South America, such as Venezuela (oil), Chile (copper) and Bolivia (gas), which sell their respective products at the price of Marketplace.
Faced with Paraguayan demands, President Lula declared that "there are no prohibited topics in the relationship between the two countries, but a negotiation in this sense is out of the question."
According to various Paraguayan media, Brazil pays a value below the market, as in 2007, which was 373 million dollars, which configures an imperialist imposition by the Brazil.
The President of the Energy Research Company (EPE) defends the permanence of prices charged for several reasons, especially for the the fact that Paraguay contracted debts for the construction of the plant, since that country came in with only 50 million dollars and the cost total was 12 billion dollars, in addition, the Paraguayan resource was financed by Banco do Brasil, in short, there are debts to be remedied.
By Eduardo de Freitas
Graduated in Geography
Source: Brazil School - https://brasilescola.uol.com.br/brasil/o-impasse-sobre-usina-itaipu.htm
