Itaipu Binacional says the Ueno Bank crisis has not affected operations at the Brazil-Paraguay hydroelectric plant. (Foto: Instagram)
Itaipu Binacional says a banking scandal in Paraguay has not affected operations at the hydroelectric plant shared by Brazil and Paraguay. The company’s Brazilian administration said it has no funds deposited or invested at Ueno Bank, which was dissolved by Paraguay’s central bank earlier this week, and that electricity generation and supply continue normally.
In a statement, Itaipu said its financial investments follow internal procedures and standards for security, liquidity and returns. It added that each side manages its own funds according to its respective responsibilities. The Brazilian side’s resources move through Brazil’s banking system, the company said.
Opened in 1982 on the Paraná River along the border between the two countries, Itaipu is jointly owned in equal shares. Although ownership is shared, the Brazilian and Paraguayan sides are managed independently. The Paraguayan side has been linked to the crisis because Itaipu is among the public institutions in Paraguay reported to have held funds at Ueno. The amount associated with the company has not been disclosed.
Estimates indicate that Ueno held about $850 million in Paraguayan public funds, which were frozen after the bank’s dissolution process began. The bank’s closure has also fueled political fallout in Paraguay, where lawmakers, including allies of President Santiago Peña, have initiated impeachment proceedings.
Peña, elected in 2023, had ties to the bank and was a shareholder in a company linked to Ueno until March 2025, according to the report. He submitted a resignation on Thursday, Nov. 5, but Paraguay’s Congress rejected it. Impeachment proceedings remain under discussion and could result in the 47-year-old president losing his parliamentary immunity.
