MercoPress. South Atlantic News Agency

ALBA summit support Paraguay’s Itaipu dam claims

Leaders Morales, Lugo and Chavez celebrate the ALBA summit

The ALBA group presidential summit, which has Venezuelan leader Hugo Chavez as its main promoter, fully supported Paraguayan claims in its conflict with Brazil regarding the energy from Latinamerica’s largest hydroelectric dam Itaipú.

Paraguayan president Fernando Lugo was present at the Venezuelan summit as an observer. ALBA (Bolivarian Alternative for the Peoples of our America) is made up of Venezuela, Cuba, Honduras, Nicaragua, Bolivia and the island of Dominica. Ecuador as Paraguay is an observer and was represented by its Foreign Secretary.

The final declaration from the Fifth extraordinary ALBA summit states that it supports “Paraguay’s proposal to advance in energy regional integration in the Southern Cone of the continent” adding that this proposal has as “prerequisite the full sovereignty of Paraguay over all its hydroelectric resources, issue on which delegates from ALBA countries expressed interest in showing full solidarity with Paraguay in the current (Itaipú) negotiations with Brazil”.

“We welcome the attendance at our Summit of the President from the Republic of Paraguay, Mr. Fernando Lugo, elected by popular vote in 2008, in a clear majority demonstration of the people’s wishes for political, economic and social changes”.

Paraguay and Brazil share Latinamerica’s largest hydroelectric dam with most energy going to Brazil’s industrial hub in Sao Paulo, including the Paraguayan surplus.

The dispute is based on the fact that energy prices are regulated by a contract dating back to the seventies and surplus can only be sold to the partner.

Paraguay is pressing for an update of energy prices and free disposal of its surplus which Brazil refuses to accept. The difference could represent hundreds of millions of US dollars for poverty stricken and landlocked Paraguay.

The ALBA summit met in Cumaná ahead of the Fifth Summit of the Americas in Trinidad Tobago and which will extend until next Sunday.

The leaders present at Cumana included host Hugo Chavez; Bolivia’s Evo Morales; Cuba’s Raul Castro; Nicaragua’s Daniel Ortega; Manuel Zelaya, Honduras and Dominica PM Roosevelt Skerrit.