Brazil to triple electricity payments to Paraguay

Paraguayans cheers as the Brazilian Senate approves the increase in electricity payments The Brazilian Senate's decision went down well in neighbouring Paraguay

Related Stories

The Brazilian Senate has given final approval to a deal tripling the amount Brazil pays Paraguay for energy from their joint Itaipu hydroelectric dam.

Brazil's yearly payments to Paraguay will rise to $360m (£220m) from the current $120m.

The deal was reached in 2009 by Paraguayan President Fernando Lugo and then Brazilian head Luiz Inacio Lula da Silva, ending a long-running dispute.

Critics say the move will mean Brazilian consumers paying more.

The Itaipu dam, one of the world's biggest, was inaugurated by Brazil and Paraguay in 1984, with each country having the right to 50% of the energy generated.

map

Paraguay uses only about 5% of its share but under the terms of the initial treaty had to sell its surplus to Brazil at a fixed price.

Prsident Lugo said the price was far too low compared with what Paraguay could get from selling to other South American nations or on Brazil's unregulated energy market.

The Brazilians long argued that they paid for most of the vast project's construction, and that Paraguayans had to pay their fair share.

The 2009 deal followed months of wrangling between the two countries.

The vote by the Brazilian Senate to approve the agreement came amid vocal opposition from some quarters.

Brazilian consumers would clearly be affected by the increase in payments, said Senator Itamar Franco.

In Paraguay, people followed the proceedings in the Brazilian Senate on television, cheering loudly when the deal was approved.

Current Brazliian President Dilma Rousseff is due to visit Paraguay on Sunday.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Latin America & Caribbean stories

RSS

Features

  • RihannaCloud caution

    After celebrity leaks, what can you do to safeguard your photos?


  • Cesc FabregasFair price?

    Have some football clubs overpaid for their new players?


  • Woman and hairdryerBlow back

    Would banning high-power appliances actually save energy?


  • Rack of lambFavourite feast

    Is the UK unusually fond of lamb and potatoes?


  • Members of staff at James Stevenson Flags hold a Union Jack and Saltire flag UK minus Scotland

    Does the rest of the UK care if the Scots become independent?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.