Paraguay and Brazil end the controversial secret agreement …

Paraguay and Brazil have decided to cancel a secret bilateral agreement signed more than two months ago for the distribution of Itaipu hydroelectric power. It establishes minimum quantities of distribution and purchase values ​​well below the market price. These conditions, clearly unfavorable to Paraguay, led the opposition to announce the request for a political trial against President Mario Abdo Benítez.

The demand for the cancellation of the bilateral act came from the government of Abdo Benítez, driven by the political crisis that had led to the resignation of the Chancellor and 4 other officials. The head of state said that the drafting of the agreement could make Paraguay vulnerable, in contradiction with what he had said when the scandal broke out. There was talk of benefits to the country and a historic agreement. "The document will be referred to the technical fora for the negotiation of outsourcing of the Itaipu binational electricity," said an official statement Thursday.

After 24 hours without appearing publicly, Abdo Benítez sent a message to the nation in which he thanked the people who supported him in the crisis, including Brazilian President Jair Bolsonaro. He justified his silence in recent days by baderting that he did not want to speak without leaving the document criticized without effect. "On Sunday, I ordered then Foreign Minister Luis Castiglioni to carry out the process of its cancellation, given the vulnerability that Paraguay could have when drafting an act. Legislative, knowing that it had sparked a pbadionate debate and I am convinced that good faith, "he said in a message addressed to the people by the López Palace.

In the midst of a political crisis unleashed in Paraguay, the Brazilian government came to support the leader of the Colorado party. "We hope that cooperation with President Abdo can continue, which will allow the full implementation of ongoing initiatives and the continuity of new developments, including mutually beneficial agreements on Itaipu," said the statement issued by the ministry. Brazilian Foreign Office. Bolsonaro spokesman, retired General Otavio Rego Barros, said on Wednesday that the Brazilian government was ready to denounce the recent act of renegotiating Itaipu's energy, at the origin of the crisis in the country. neighboring country

After this news, the demand for political judgment against the president has lost its vigor. Without the dissidents of the Colorado government party, the opposition does not have the necessary votes to fire him. "We withdrew from the intention to open the political trial against the President of the Republic.We believe that with the document that leaves the bilateral act without effect, the damage is repaired ", announced on his Twitter account the dissident deputy Pedro Alliana.

From the left group, Front Guasú said that he would insist on the request for political trial. "The cancellation of the secret act Abdo-Bolsonaro does not cancel the responsibility of the President of the Republic responsible for the malfunction of his duties, dealing with the Bolsonaro government of the interests of the entire nation ", said Sixto Pereyra, senator of Front Guasu

The authorities of the two countries must redefine the energy schedule contracted by the Brazilian company Eletrobrás and the Paraguayan Ande for the energy distribution of the Itaipú binational hydroelectric power station, for the period 2019-2022. According to some experts, the deal would have resulted in a loss of more than 200 million dollars for Paraguay.

This hydroelectric power station, built on the mighty river that borders the Paraná, is considered the second largest in the world after the Three Gorges of China. Its construction required the flooding of much of the Paraguayan coast. It has an installed capacity of 14,000 megawatts and feeds the richest states of Brazil, such as Sao Paulo, Rio de Janeiro, Parana and Rio Grande do Sul, among others. Paraguay uses only 7% of the energy produced and sells all its surplus to Eletrobrás. Its construction and subsequent exploitation have historically benefited Brazil.

The Paraguayans believe that Brazil is paying a ridiculous price for the energy that it sells to its partner and to its neighbor. "We demand a payment at market prices," said Ricardo Canese, a specialist in hydropower and parliaments at Front Guasú.