Agreement on Itaipu Is Nullified to Cool Crisis in Paraguay

Through the Energy Agreement Signed Just Over Two Months Ago Between Brazil and Paraguay, the Opposition in the Country Threatened President Márcio Abdo with Impeachment.

The Ministry of Foreign Affairs of Paraguay Announced This Thursday, August 1st, the Signing of a New Bilateral Document, in Which Brazil Recognizes the “Unilateral and Sovereign” Decision of the Neighboring Country to Nullify the Power Contract Agreement for Itaipu, Signed on May 24th of This Year. The Document Was Signed by the Brazilian Ambassador in Asunción, Carlos Alberto Simas Magalhães, and the Paraguayan Foreign Minister, Antonio Rivas Palacios.

Subsequently, the Honor Colorado Bench, Linked to Former President Horacio Cartes, Who is Part of the Support Base of the Mandatary, but Was Aligned with the Proposal to Hold a Political Trial That Could Result in Impeachment, Declared That It Changed Its Position. The Announcement Was Made by the President of the Paraguayan Chamber of Deputies, Pedro Alliana. Thus, According to the Paraguayan Press, the Chance for the Opposition to Advance with the Deposition Process Has Ended.

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The Paraguayan Foreign Minister, Antonio Rivas Palacios, Highlighted That, in This Way, the Negotiations Regarding This Matter Return to Square One.

Abdo Spoke in Asunción Shortly After the Cancellation of the Document and the Announcement from the Honor Colorado Group That It Would Not Support the Impeachment Process. He Thanked the Legislators Who “Saved” Him.

“I Said That I Will Not Tolerate Corruption, Regardless of the Day, Due to the Proximity to My Colleagues and Friends in the Fight, This Does Not Give Us the Right to Have Misconduct in the Administration of Public Affairs. Not Only Acts of Corruption But Also Mistakes. This Is Why I Ordered That Those Who Participated in the Process, Perhaps Without Malice, Be Removed from Office,” Said the President.

In May, the Brazilian and Paraguayan Governments Signed a Document That, in Practice, Would Make Paraguay Pay More for Itaipu Energy. According to the Signed Text, Paraguay Increases the Forecast for the Purchase of the So-Called Guaranteed Energy, Which Is More Expensive, Reducing Consumption of the So-Called Surplus Energy, Which Is Cheaper.

The Itaipu Hydroelectric Plant, Built on the Paraná River, Which Separates Brazil and Paraguay, Produces 14,000 Megawatts and Is the Second Largest in the World, Behind China’s Three Gorges. Brazil Consumes 93% of the Plant’s Energy and Buys the Surplus from What Would Have Corresponded to Paraguay.

The Paraguayan Opposition Questions the Sale of This Energy “at a Ridiculous Price,” According to Lawmaker Ricardo Canese, Who Belongs to the Frente Guasú Party (Large Front). A New Treaty Involves Reviewing the Price of Energy, Which Has Always Been Perceived in Paraguay as Unfavorable to Its Interests.

“Paraguay Has Foregone Receiving US$ 75 Billion for Not Selling at Market Price Since the Plant Began Operating in 1984,” Assured Political Scientist Miguel Carter to AFP, According to Calculations Based on Official Data.

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