MercoPress. South Atlantic News Agency

Lula da Silva and Sarney promise quick approval of Itaipú accord

Itaipú is the world’s largest operational dam

Brazilian president Lula da Silva and the head of the Senate Jose Sarney promised a delegation of visiting Paraguayan lawmakers that the Itaipú dam accord reached last July will receive congressional approval as soon as possible.

Lula da Silva reiterated to the visiting delegation headed by the president of the Paraguayan Senate Miguel Carrioza that the accord and public works plan worked out during his July official visit to Paraguay has the full support from the government and will be approved.

“The two countries Foreign Affairs officials are studying the drafts agreed and via reversal notes should soon have the final texts”, which include a substantial increase in compensations paid by Brazil for the surplus power generated in the bi-national hydroelectric complex said Lula da Silva.

Senator Sarney confirmed that the Brazilian congress has “the best good will to vote and approve the accord as soon as possible”.

The delegation also met with the president of the Senate Foreign Affairs committee, Eduardo Azeredo from the opposition who said that the first job will be to see the impact of the accord for the Brazilian consumer “because of the increase in the cost of electricity”.

Nevertheless Azeredo anticipated that the opposition would not object to the Brazilian financing of infrastructure works in Paraguay.

Itaipu is the world’s largest operational hydroelectric dam and the excess power from the Paraguayan share of the bi-national complex is absorbed by energy hungry Brazil. However the prices date back to the seventies when the project was agreed plus the fact that surplus power can only be sold to the other associate. Paraguay only consumes 10% of its share of electricity generated.

Paraguay and more specifically the administration of President Fernando Lugo have been struggling for a better deal with the surplus power. Finally last July an accord was struck by which Brazil trebles compensation and will finance several infrastructure projects.

Senator Carrioza underlined that the delegation that visited Brazil has representatives from all political parties because Itaipú is a “national cause” and all groups agreed that it’s imperative that the accord is approved and effective before it becomes contaminated with the 2010 Brazilian presidential elections.