Brazil, Peru sign agreements, stress energy cooperation

Brazilian President Luiz Inacio Lula da Silva signed a number of cooperation agreements with his Peruvian counterpart Alan Garcia on Wednesday, including one aimed at initiating the process of energy interconnections between the two countries.

Under the Agreement on Provision of Electricity to Peru and Surplus Export to Brazil, the process of interconnecting the two countries’ national electricity systems will be launched, the Brazilian Foreign Ministry said.

The agreement will contribute to energy security in both countries, it said.

After meeting Garcia in the Brazilian Amazon city of Manaus, Lula put the co-generation potential at 7,200 megawatts. He also again defended the integration of Latin American countries, but regretted that the foundation for economic development in the region had not been laid yet.

“Honestly I cannot understand how so many people who ruled our countries let us remain so distant (from other South American countries) and allowed our privileged relations to develop with the North and not with the South,” he said.

According to Lula, while Latin American countries were no longer being colonized, they remain largely dependent on developed countries.

“Part of our continent depended on the Spanish Crown and the other on the Portuguese Crown, but even after 200 years of independence we are dependent on the rich side of the continent,” he said.

Meanwhile, Peruvian President Garcia announced that projects were under study for integration of gas grids between Brazil and Peru, facilitation of customs procedures, and use of local currencies in bilateral trade.

Garcia also praised Lula for promoting a process that enriches continental integration progressively.

“I am pleased that President Lula makes social policy at home and at the same time raises the flag of Latin American integration,” said Garcia.

The energy agreement signed by the leaders establishes general rules for Brazil’s participation in hydroelectric projects in Peru and allows the export of surplus electricity to Brazil.

Both presidents also defended the launch of energy initiatives in ecologically sensitive areas, such as the Amazon, noting that hydroelectric power is cheaper and cleaner compared with that generated from coal or fossil fuels.

Lula and Garcia also signed cooperation agreements in the areas of land management, water resources integrated management, agroforestry systems installation and management of an industrial training center.