ITAIPU transferred USD 248 million to Paraguay in the first semester of 2021, for Annex C

This ITAIPU Binacional release was published using machine translation.

ITAIPU Binacional, within the framework of compliance with the obligations established in Annex C of the Treaty, transferred USD 248 million to the Paraguayan State during the first semester of 2021. Disbursements correspond to the concepts of royalties, transfer of energy and payments to the Administration National Electricity (ANDE).

From January to June of this year, ITAIPU remitted USD 108.5 million for the transfer of energy and USD 106.3 million for royalties in favor of the National Treasury. For its part, ANDE received USD 33.2 million for the compensation of administration charges and profits; according to the report of the Financial Directorate, Right Bank, of the Binational.

Regarding only transfers made in June, royalties totaled USD 15.8 million, while disbursements for the transfer of energy reached USD 15.2 million. ANDE received USD 6 million for profits and USD 1.2 million for compensation for administration charges (USD 7.2 million in total).

Despite the current complicated situation caused by the COVID-19 pandemic and the hydrological crisis, the ITAIPU Hydroelectric Plant maintains an optimal performance, which allows the company to meet the energy demand of the two countries and fully meet its financial obligations .

The royalties constitute a financial compensation received by the States of Paraguay and Brazil for the use of the hydraulic potential of the Paraná River for the production of electricity in the ITAIPU dam. The transfer of energy is the compensation paid by the Brazilian State to access the portion of the production that Paraguay does not use (surplus). These two concepts are transferred to the Ministry of Finance, an institution in charge of distributing resources, as established by national laws.

ANDE receives monthly payments for compensation of charges, and periodically also receives income from capital utilities to meet its budgetary needs, as provided in Annex C of the Treaty of the Entity.

To face the health emergency, rigorous procedures were adopted on the Right Bank in order to maintain productivity. Currently, the Binacional covers around 90% of Paraguay's energy demand and about 15% of all Brazilian consumption.