General Environment Analysis Analysis Of Itaipu Dam

GENERAL ENVIRONMENT ANALYSIS Demographic Segment †¢ Before Itaipu Dam was created, Iguassu Falls had a population of about 20,000 people. Between 1975 and 1978, over 9,000 houses were constructed to provide accommodations for the project workforce, increasing the population to about 102,000. †¢ Itaipu dam is located on the Paranà ¡ River, at the border of Brazil and Paraguay. Relations between Brazil and Paraguay are based on the contractual aspects of binationality. †¢ Itaipu Binacional (Itaipu) contributed to the job increase in both Brazil and Paraguay, creating about 40,000 workers. In 2003, the Itaipu workforce totaled 1,424 employees in Brazil and 2,036 in Paraguay. †¢ There are 1.6 billion people worldwide without electricity. Economic Segment †¢ Global oil crisis of the early 1970s strongly emphasized the importance of renewable energy sources. †¢ The plant doubles the capacity of power generation in Brazil, meeting 26 percent of the country’s power in demand. †¢ Between 1975 and 1978, Paraguay’s GDP increased from 5 to 10.8 percent. †¢ There was an absolute control of the State in electrical sector until the early 1990s, then privatization process was initiated. †¢ Thermal power offered investment advantages, discouraging new hydroelectric projects. Political Segment †¢ The Itaipu Treaty between Brazil and Paraguay was signed. Relations between these two countries are based on the contractual aspects of binationality. †¢ In the late 1990s, blackouts were the major concern.