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Macroeconomic Impact of the Itaipú Treaty Review for Paraguay

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  • Ms. Natasha X Che

Abstract

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.

Suggested Citation

  • Ms. Natasha X Che, 2021. "Macroeconomic Impact of the Itaipú Treaty Review for Paraguay," IMF Working Papers 2021/129, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/129
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    Keywords

    revenue distribution; distribution of the Itaipú Dam; sales arrangement; Annex C revision; compensation payment; Electricity; Exports; Fiscal stance; Renewable energy; Natural resources;
    All these keywords.

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