Asunción, IP Agency.- Ministers of the Executive Branch explained in a press conference the scope of the agreement reached with Brazil on the price of Itaipu’s energy tariff until 2026 and the bases for the negotiation of Annex C. They stated that this agreement opens a window for Paraguay to give a leap in its development process and can turn from an energy exporter into a host of investments.
After the official announcement made by President Santiago Peña, the national chancellor, Rubén Ramírez, led the press conference where they delved into the explanations regarding the “historic agreement” reached with Brazil.
Ramírez explained that the most important aspects of the agreement include the establishment of a tariff for electricity at 19.28 Kw/month until 2026, the maintenance of the Itaipu operating agreement, the immediate possibility for Paraguay to sell its part of the unconsumed energy, and the agreement to conclude this year the negotiation of Annex C of the binational.
Likewise, the Executive authorities referred to the use of the 1,250 million dollars of income that Paraguay will receive thanks to the established rate. “These resources are going to be administered with honesty, transparency and a lot of patriotism,” said the Vice President of the Republic, Pedro Alliana.
In that sense, the head of the Cabinet of the Presidency of the Republic, Lea Giménez, reinforced that the use of these resources will be subject to “historical management in terms of transparency” and announced that the mechanisms are being defined to ensure a use ” that it is effectively open to citizens, with full accountability.
In his message to the country, President Peña announced that the 1.25 billion dollars that Paraguay will receive annually until 2027 will be allocated to the creation of health promotion, food and education centers for all children in Paraguay, national security and citizen, the construction of three large hospitals in the interior of the country, modernization of road infrastructure, public transportation and the strengthening of energy infrastructure.
Short, medium and long term strategies
Along with investments in hospitals and road and transportation infrastructure, a large part of these resources will be used to strengthen our electricity distribution and transmission capacity, stated the Minister of Industry and Commerce, Javier Giménez.
He highlighted that Paraguay’s negotiation strategy always had a short, medium and long-term plan, where there will be a short period in which Paraguay will continue to be an energy exporting country, obtaining resources “never seen before”, and also exporting to the Brazilian free market.
«The idea is that from 2027 Paraguay will have the capacity to consume its part of the energy generated in Itaipu, regardless of the price of the tariff that is established from that year onwards, because by giving added value that tariff is multiplied by five or for six. By no longer exporting that energy and transforming it into finished products, it is the idea to industrialize Paraguay,” he said.
Foreign Minister Ramírez reinforced that the Paraguayan strategy for this negotiation contemplated a transition period so that Paraguay “is not only an energy exporter but also hosts investments that use the country’s full potential and generates production, profitability, fair employment and sustainable, well-paid for all Paraguayans.
In the same sense, the president of the National Electricity Administration, Félix Sosa, stated that “so far a higher rate suits us as Paraguay because the percentage of Paraguay’s use is still much lower than that of Brazil.” 
“But by 2027, with a growth of approximately 12% per year, we would already be very close to using the power that corresponds to Itaipu Binacional,” he clarified.
Likewise, he clarified that ANDE clients “at no time will there be a rate increase due to this increase” in the rate, since this additional amount of approximately 73 million dollars in power purchase will be compensated from the income. that Itaipu now has.
It has been a success in terms of a negotiation
The Chief of Staff of the Presidency of the Republic and advisor to Itaipu, Lea Giménez, highlighted that this is a very important moment for our country.
«It is time, ultimately, for celebration. This is the most important achievement of the Itaipú Binacional dam since its construction, the results for Paraguay are tremendously favorable, so we can celebrate with peace of mind that this has really been a success in terms of a negotiation where we work side by side with our Brazilian brothers,” he expressed.
Likewise, he highlighted the leadership of President Santiago Peña throughout these negotiations with the government of Brazil, demonstrating firmness and determination regarding the interests of the Paraguayan people.
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2024-05-13 17:40:49