Mon Jan 30, 2023
January 30, 2023

Paraguayans Against Itaipu Agreement!

The Paraguayan people took the streets on July 27, 2019 against a new agreement with Brazil which increases the price of energy in 40%.

By CSP-Conlutas Media Workgroup

The agreement was imposed by Brazilian authorities last May but kept secret by Paraguayan president Mario Abdo Benitez.

Under threat of impeachment, President Mario Abdo Benitez cancelled the agreement.

The agreement is related to the energy generated by Itaipu Dam, the second largest in the world.

Built on the border between Paraguay and Brazil, it benefits primarily the Brazilian economy.

Each country has the right for 50% of the energy output for which they pay US$ 43 / MWh.

Brazil takes 93% of all output: 50% on their right and 43% from Paraguay who takes only the remaining 7%.

The 1973 agreement between the two countries establishes that none can sell the energy to other countries for 50 years.

Brazil pays around only US$ 43 / MWh for the energy which is resold inside Brazil on US$ 125 / MWh for industries and US$ 206 / MWh for domestic consumption.

The Paraguayan government gets only US$ 360 million per year as indemnity. On market prices it should be around US$ 2,900 million.

On top of this neocolonial agreement, Brazil is also responsible for the destruction of the country 150 years ago in a war waged against Paraguay by the combined forces of Brazil, Argentina and Uruguay.

CSP-Conlutas stands in solidarity to the Paraguayan working class in their struggle against energy price hikes and for full sovereignty.

CSP-Conlutas also demands the Brazilian government the full disclosure of all archives related to the war against Paraguay.

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