Negotiations between Brazil and Par

Negotiations between Brazil and Paraguay[edit]
The concept behind Itaipu Power Plant was the result of heavy negotiations between the two countries during the 1960s. The "Ata do Iguaçu" (Iguaçu Act) was signed on July 22, 1966, by the Brazilian and Paraguayan Ministers of Foreign Affairs, Juracy Magalhães and Sapena Pastor, respectively. This was a joint declaration of the mutual interest in studying the exploitation of the hydric resources that the two countries shared in the section of the Paraná River starting from, and including, the Salto de Sete Quedas, to the Iguaçu River's watershed. The Treaty that gave origin to the power plant was signed in 1973.
The terms of the treaty, which expires in 2023, have been the subject of widespread discontent in Paraguay. The government of President Lugo vowed to renegotiate the terms of the treaty with Brazil, which long remained hostile to any renegotiation.[3]
In 2009, Brazil agreed to a fairer payment of electricity to Paraguay and also allowed Paraguay to sell excess power directly to Brazilian companies instead of solely through the Brazilian electricity monopoly.[4][5]