Macroeconomic Impact of the Itaipú Treaty Review for Paraguay

Author: Che Natasha X

Volume/Issue: Volume 2021 Issue 129

Publication date: May 2021

ISBN: 9781513573755

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics / General , Natural Resources , Exports and Imports , Economics- Macroeconomics , revenue distribution , distribution of the Itaipú Dam , sales arrangement , Annex C revision , compensation payment , Electricity , Exports , Fiscal stance , Renewable energy , Natural resources

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Summary

With the debt obligation of Itaipú Binational being completed paid off by 2023, the Annex C of the Treaty of Itaipú, which governs the operation and revenue distribution of the Itaipú Dam, is due for review and possible revisions. The implications for Paraguay’s export revenues and fiscal position are potentially significant. The paper reviews the current energy distribution and sales arrangements of Itaipú and the potential implication of the Annex C revision for the future.