Learning from Itaipu: A Model for Transboundary Cooperation
In the heart of South America, the Itaipu Hydropower Project stands as a model of international cooperation and shared prosperity. Standing nearly 200 meters high and 8 kilometers long, Itaipu dam is the third largest in the world with an installed capacity of 14,000 MW. This colossal joint project between Brazil and Paraguay does more than generate electricity; it symbolises how two nations can transcend borders to achieve common goals. A jointly invested and operated project signifies one of the highest levels of cooperation between nations sharing a transboundary river.
Recently, senior representatives from the Mekong River Commission (MRC) and its member countries embarked on an exploratory visit to Itaipu, aiming to draw lessons that could inform similar endeavors of joint cooperation in the Mekong region, particularly the planned and future joint projects including hydropower between the Mekong countries.
Consider this: when the Mekong countries move forward with joint hydropower projects, not only do the hydropower dams produce a significant portion of the electricity for all nations, but they can also exemplify how joint investments can enhance feasibility studies or even prevent disputes, foster sustainable development, and benefit entire regions. Itaipu offers a valuable case study in transforming potential conflict into cooperation through cost and benefit sharing, joint management and operation between the two riparian countries and also put in place measures (Three Party Agreement 1979) to avoid, minimise and mitigate adverse transboundary impacts to downstream countries (i.e., Argentia).
Dr. Anoulak Kittikhoun, CEO of the MRC, captured the essence of Itaipu’s success.
“Itaipu isn’t just a big hydropower dam. It is a project that resolves border and water dispute between three neighbouring countries. To me, it is the most impressive aspect,” Dr. Kittikhoun said, “This project unites Brazil and Paraguay in equal partnership, sharing investments and benefits. It guarantees downstream protection through a specific agreement and offers extensive social and livelihood programs, providing long-term royalties to affected communities.”
Briefings and presentations provided by Management and Technical Team of the Itaipu Binacional (Brazilian side) during the visit on 29 July 2024.
The visit highlighted several key aspects of the Itaipu project that could serve as valuable lessons for the Mekong countries:
- Joint investment, management, and operation: Itaipu is a paragon of balanced joint investment, with Brazil and Paraguay equally sharing the costs and benefits. This equitable partnership extends to the management and also operational levels, where both nations contribute equally to the daily operations and decision-making processes.
- Environmental and social considerations: With 50 years in operation, the Itaipu project is renowned not just for its engineering marvel but also for its extensive social and environmental programs. Impacted communities not only receive one-time compensation but long-term royalties. This approach underscores the importance of not only mitigating adverse effects but ensuring that development benefits are equitably shared.
- Conflict resolution and negotiation: The successful negotiation and collaboration between Brazil and Paraguay, despite their differences, provide a roadmap for resolving potential conflicts. The Itaipu Treaty (1973) serves as a foundational document that ensures mutual benefits and responsibilities. Based on the Mekong Agreement, the Mekong countries already have solid foundation to further pursue joint investment projects and consult neighboring countries through relevant MRC procedures and guidelines.
The MRC’s Proactive Regional Planning (PRP) initiative aims to develop an adaptive basin plan, focusing on integrated solutions that address water, food, energy, and environmental needs. Under the PRP work, by the end of 2024, a number of supplementary projects – joint investment projects – will be identified. The insights gained from Itaipu are particularly relevant to the MRC’s consideration on these identified joint investment projects under PRP, as well as other number of joint projects including the joint hydropower projects and joint projects identified under the National Indicative Plan such as the Mekong Delta.
Take the planned Pak Chom and Ban Kum/Salavanh hydropower projects as an example. These two projects, planned for the Mekong mainstream, across the shared Mekong River between Laos and Thailand, can be complicated and raise major concerns. However, the experience of Itaipu demonstrates how transboundary collaboration can be leveraged to achieve sustainable hydropower development. If pursued, both projects need to involve high level governmental and national efforts on both sides, requiring meticulous joint planning and negotiation to address shared concerns and benefits between both countries and also other riparian countries.
By focusing on negotiation, collaboration, and comprehensive planning, these projects can achieve sustainable development and benefit sharing, ensuring that all stakeholders, including downstream countries and affected communities, are considered. The MRC’s ongoing work under the PRP and other initiatives will continue to facilitate such initiatives, promoting regional cooperation and integrated water resource management for a sustainable Mekong Basin.
“Mekong countries, if you’re going to do a big project that affects other countries and millions of people, do it right!” Dr. Kittikhoun emphasised.
Reflections from Delegates of the MRC Member Countries
