Itaipu: Government wants to appoint a record number of ministers – 03/08/2023 – Market

The government of Luiz Inácio Lula da Silva (PT) works to have a record number of ministers on the Itaipu council, when compared to other PT administrations.

According to people accompanying the nominations, the Executive seeks an aligned administration at a key moment in the negotiations with Paraguay about the future of the plant.

Alexandre Padilha (Institutional Relations) and Esther Dweck (Management and Innovation) have already been confirmed. There is an expectation that the board will still receive Fernando Haddad (Finance), Rui Costa (Civil House), Alexandre Silveira (Mines and Energy) and Mauro Vieira (Foreign Relations).

The confirmation of the names would be a change in the pattern of choices. In the last 20 years, the presence of ministers was a minority and sporadic. Only eight occupied seats on the Itaipu council.

In the terms of Lula and Dilma Rousseff, there were five in total: Ciro Gomes (Minister of National Integration), Silas Rondeau (Mines and Energy), Paulo Bernardo (Minister of Planning), Celso Amorim (Minister of Foreign Affairs) and Aloizio Mercadante ( when Minister-Chief of the Civil House)

In the Bolsonarist government, there were three: Bento Albuquerque and Adolfo Sachsida (Mines and Energy) and Carlos França (Foreign Relations)

To guarantee a “ministerial council”, the government needs to circumvent a long tradition of allotments at this level, overcoming political pressures from grassroots parties and local demands for the post.

A seat on the board has always been coveted not just for its influence but for its pay. An Itaipu counselor earns around R$37,000 a month.

The appointment of ministers, say government interlocutors, now has foreign policy reasons. It seeks to unify and strengthen the action of the summit on the Brazilian side for a historic moment.

Starting this year, the representatives of Brazil and Paraguay at Itaipu will have the mission of participating in the renegotiation of the so-called Annex C of the bilateral treaty, which governs the financial structure of the company and the commercialization of the plant’s energy.

The directors of each partner are at the forefront of discussions. The expectation is that there will be a tough fight, with a lot of pressure on the side of Paraguay, for which Itaipu is an important source of income.

Financial definitions directly affect consumers on both sides of the border, but especially Brazilians, who consume 85% of the energy from the hydroelectric plant.

The agreement between Brazil and Paraguay provides that Annex C can be negotiated after the payment of the debt contracted almost 50 years ago for the construction of the plant, an event that took place on February 28th. The parties are expected to begin negotiations in the second half, after the presidential election in Paraguay.

In Itaipu’s council, each country has six vacancies for councilors and one for representatives of the ministries of Foreign Affairs, which constitute the so-called “high parties” —the diplomatic area of ​​each government.

At the management level, there is the post of general director, responsible for running the company, and five executive directors on each side.

Due to the bureaucratic procedure in Brazil, the government chooses the names, the MME sends them for approval by ENBPar (Empresa Brasileira de Participações em Energia Nuclear e Binacional), a holding company created after the privatization of Eletrobras. Afterwards, the names go to the Civil House and are made official by decree signed by the President of the Republic.

On Friday (3), the ENBPar approved Lula’s nominee for the general board, federal deputy Enio Verri (PT-PR). At that same meeting, the ENBPar also referred Ministers Padilha and Dweck to the council.

In the captive chair of diplomats, the nomination of Minister Mauro Vieira is taken for granted. But people close to the company believe that one of the vacancies could go to ambassador Maria Laura da Rocha, who is in charge of the general secretary of the Ministry of Foreign Affairs.

Historically, the board has always had nominees from Eletrobras, when the company was a state-owned company. Following this dynamic, the ENBPar would have a vacancy.

This Tuesday (7), Verri met with Silveira in the morning and is expected in Itaipu this Wednesday (8). He, however, will have limitations to deal with the transition with the current director general — Vice Admiral of the Navy Anatalicio Júnior Risden was diagnosed with dengue.

Verri has already started announcing PT names or party allies to the board.

Lawyer Luiz Fernando Delazari, who worked with former Paraná governor Roberto Requião, will join the Legal Department. The also lawyer Carlos Carboni, linked to family farming movements and former chief of staff of Gleisi Hoffmann (PT) when Minister of the Civil House, will be in charge of the Coordination Board.

For the Technical Board, Valter Luiz Cardeal, who had a strong presence in the energy area during Dilma Rousseff’s government; and Renato Sacramento, historical name of Eletrobras.

There was a bigger dispute for the Financial Board, say people from the government. The Senate tried to placate Astrogildo Quental, who made a career at the still state-owned Eletrobras, especially at Eletronorte. The post, however, tends to stay with former federal deputy Pedro Guerra (PSD-PR), son of former minister and former deputy from Paraná Alceni Guerra.

QUESTIONS AND ANSWERS ABOUT ITAIPU

• What is the treaty binacional of Itaipu?
  It is the document signed in 1973 between the governments of Brazil and Paraguay to delimit procedures for the Itaipu Binacional power plant, hydroelectric use of the Paraná River, from and including the Salto Grande de Sete Quedas, or Salto de Guaíra, to the mouth of the Iguaçu River
• What is Annex C of the treaty?
  The Itaipu treaty is divided into three chapters named in letters. Annex A deals with the statute of the Itaipu company. Annex B provides a general description of the installations for the production of electricity and auxiliary works, with any necessary modifications. The Annex determines the financial bases and provision of electricity services
• How is Itaipu’s board chosen?
  The governments of Brazil and Paraguay appoint Itaipu’s executive board. Six directors are chosen by the Brazilian partner, and another six by the Paraguayan partner, one on each side being the general director. Counselors are also appointed by the governments of both countries. There are 12 directors, six from each country. There are also two seats on the board for representatives of the Ministries of Foreign Affairs of each country. Directors serve a five-year term, and directors serve four-year terms.
• What are the high parts?
  It is the term used within the treaty to define the governments of Brazil and Paraguay, represented by their diplomatic ministries.