Tension between Argentina and Paraguay on the rise

Wednesday, September 20th 2023 - 08:05 UTC

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Tension between Argentina and Paraguay is on the rise after Economy Minister and presidential candidate Sergio Massa argued that his country had paid for the construction of the Yacyretá Dam between the 1980s and 1990s and was still owed “billions of dollars” for it. Read full article

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Brasileiro
“I would like to know why we Argentines have to pay more expensive energy than Brazil when buying from Paraguay,” he said. “I also wonder why they do not pay us the millionaire debt they have with Yacyretá?”

The Itaipu hydroelectric plant was built in the 70s with resources from Brazil. The contract signed by Paraguay and Brazil provided that the form of payment to Brazil would be made through the subsidized sale of any surplus of the 50% of the energy produced by Itaipu belonging to Paraguay for 50 years.

This period now ends in 2023. There are even negotiations taking place to adjust the price of energy sold. However, with massive investments in energy production made by Brazil over the last 20 years, our dependence on Paraguayan energy from Itaipu is much lower than before.

If Brazil does not buy Paraguayan energy that is not used by Paraguay itself, the energy will be wasted.
Sep 20th, 2023 - 11:00 am - Link - Report abuse -1
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