ANNEX A
TO THE TREATY OF THE ITAIPU(STATUTE OF THE ITAIPU) - MODIFICATION(Asunción, 01.28.1986)
Asuncion, in 28 of January of 1986.
DAM-I/DEM/CAI/01/PAIN L00E05
To Excellency Mr.
Doctor Carlos Augusto Saldívar,Minister of Foreign Affairs of the Republic of Paraguay.
With reference to Note DAM-I/DEM/DAI/10/241 (B46) (B44), of May, 11 of 1984, the Minister of
the Foreign Affairs of Brazil, and the Revertive Note NR 6, of the Minister of Foreign Affairs of
Paraguay, identical text and same date, and having in account what it makes use Article III,
paragraph 2nd of the Treaty of Itaipu, I have the honor to lead to the knowledge of Your honorthat the Government of Brazil is in agreement in modifying the Annex A (Statute of the ITAIPU), in
the following way:
“STATUTE OF THE ITAIPU ”
CHAPTER I
Denomination and Object
ARTICLE 1st
The ITAIPU is a binational entity created by Article III of the Treaty signed by Brazil and Paraguay,in 26 of April of 1973, and has as parts:a) the Centrais Elétricas Brasileiras S.A. - ELETROBRÁS, anonymous society of the Brazilian mixing
economy;b) the Administración Nacional de Eletricidad – ANDE, Paraguayan autarchic entity.
ARTICLE 2nd
The object of the ITAIPU is the hydroelectric exploitation of the hydrics resources of the Paraná
riverbed, pertaining in condominium to the two countries, since and also the Salto Grande de Sete
Quedas or Salto de Guaíra until the estuary of the Iguaçu river.
ARTICLE 3rd
The ITAIPU will be conducted for the norms established in the Treaty of 26 of April of 1973, in thepresent Statute and the excessively Annexes ones.

ARTICLE 4th
The ITAIPU will have, in accordance with what they make use Treaty and the its Annexes, legal,financial and administrative capacity, and also responsibility technique, to study, to project, todirect and to execute the works that have as object, to place them in functioning and to explore
them, being able, for such effect, to acquire rights and to contract obligations.
ARTICLE 5th
The ITAIPU will have headquarters in Brasília, Capital of the Federative Republic of Brazil, andAssunção, Capital of the Republic of Paraguay.
CHAPTER II
CapitalARTICLE 6th
The capital of the ITAIPU will be equivalent USS 100.000.000,00 (one hundred million dollar of theUnited States of America), pertaining to the ELETROBRÁS and to ANDE in equal and nontransferable parts.
Unique Paragraph - the capital will be remained with constant value in accordance with made use
in the paragraph 4th of Article 15 of the Treaty.
CHAPTER III
Administration
ARTICLE 7th
Are agencies of the administration of the ITAIPU the Council of Administration and the Executive
Direction.
ARTICLE 8th
The Council of Administration will be composed in twelve nominated Council members:a) six for the Brazilian Government, of which one will be indicated by the Ministry of Foreign
Affairs and two for the ELETROBRÁS;b) six for the Paraguayan Government, of which one will be indicated by the Ministry of Foreign
Affairs and two for the ANDE;
Paragraph 1st - Brazilian General Director and Paraguayan General Director, foreseen in the article
12th, also will integrate the Council, with voice and without vote.
Paragraph 2nd - the meetings of the Council will be presided over, alternating, for a Council
member of Brazilian nationality or Paraguayan and, rotating, for all the members of the Council.
Paragraph 3rd - the Council will nominate two Secretaries, a Brazilian and another Paraguayan,
who will have its position, among others attributions, to certify documents of the ITAIPU in
Portuguese and Spanish, respectively.

ARTICLE 9thCompete to the Council of Administration to fulfill and to make to fulfill the Treaty and the its
Annexes and to decide on:a) the basic lines of direction of administration of the ITAIPU;b) the Internal Regulation;c) the plan of organization of the basic services;d) the acts that matter in alienation of the patrimony of the ITAIPU, with previous seeming of the
ELETROBRÁS and of the ANDE;e) the reevaluations of asset and liabilities, with previous seeming of the ELETROBRÁS and of
ANDE, having in account made use in the paragraph 4th of the Article 15th of the Treaty;f) the bases of installment of the electricity services;g) the referring proposals of the Executive Direction the obligations and loans;h) the proposal of budget for each exercise and its revisions, presented for the Executive
Direction.
Paragraph 1st - The Council of Administration will examine the Report Annual, the General Balance
Sheet, and the demonstration of Account of the Results, elaborated for the Executive Direction,
and will present them with its to seem, to the ELETROBRÁS and to the ANDE, in agreement madeuse in the Article 24th of this Statute.
Paragraph 2nd - The Council of Administration will take knowledge of the course of the subjects of
the ITAIPU through the expositions that will be made habitually by Brazilian General Director
and/or Paraguayan General Director or of that the Council requests for intermediary of them.
ARTICLE 10th
The Council of Administration will congregate itself, usually, each two months and, extraordinary,
when convoked, for intermediary of the Secretaries, Brazilian General Director and/or Paraguayan
General Director or the half but one of the Council members.
Unique Paragraph - The Council of Administration alone will be able to decide with validity with thepresence of the majority of the Council members of each country and with equal parity of votes tothe lesser present national representation.

ARTICLE 11th
The Council members will exert its functions for a period of four years, having been able to be led
back.
Paragraph 1st - At any time the Governments will be able to substitute the Council members
whom they will have nominated.
Paragraph 2nd - When occurring definitive avoidance of a position of Council member, therespective Government will nominate substitute who will exert the mandate for the remaining
stated period.

ARTICLE 12th
The Executive Direction, corporate of national Members of both the countries, in equal number andwith the same capacity and equal hierarchy, will be composed in Brazilian General Director,
Paraguayan General Director, and the Executive Directors: Technician, Legal, Administrative,
Financial and of Coordination, and the Directors: Technician, Legal, Administrative, Financial andof Coordination, all with voice and vote.
Paragraph 1st - To each Executive Director, Brazilian or Paraguayan, it will correspond a Directorof the other nationality.
Paragraph 2nd - The members of the Executive Direction will be nominated by the respective
Governments, for proposals of the ELETROBRÁS or of the ANDE in agreement the case.
Paragraph 3rd - The members of the Executive Direction will exert its functions for a period five
year, being able to be led back.
Paragraph 4th - At any time the Governments will be able to substitute the Members of the
Executive Direction that they will have nominated.
Paragraph 5th - In case of absence or temporary impediment of a Member of the Executive
Direction, the ELETROBRÁS or the ANDE, in agreement the case, will assign the substituteamongst the too much Members, who will have also right to the vote of the substituted Member.
Paragraph 6th - When occurring definitive avoidance of a position of Member of the Executive
Direction, the ELETROBRÁS or the ANDE, in agreement the case, will indicate the substitute who,a nominated time, will exert the mandate for the remaining stated period.
ARTICLE 13th
Are attributions and duties of the Executive Direction:a) to give fulfillment to Treaty and the its Annexes and to the decisions to the Council of
Administration;b) to fulfill and to make to fulfill the Internal Regulation;c) to practice the necessary acts of administration to the conduction of the subjects of the Entity;d) to consider to the Council of Administration the basic lines of direction of administration;e) to consider to the Council of Administration norms of administration of the staff;f) to elaborate and to submit the Council of Administration, in each exercise, the proposal ofbudget for the following exercise and its eventual revisions;g) to elaborate and to submit to the Council of Administration the Annual Report, the General
Balance Sheet and the demonstration of Account Results of the previous exercise;h) to put in execution the norms and the bases for installment of the electricity services;i) to create and to install the offices administrative technician and/or who to judge necessary,
where he will be convenient;j) to approve the plan global of classification of positions, capacity and wages and benefits of theemployees.
ARTICLE 14th
The Executive Direction will be congregated, ordinary, at least two times to the month and,extraordinary, when convoked for one of the Generals-Directors.
Paragraph 1st - The resolutions of the Executive Direction will be adopted by majority of votes.
Paragraph 2nd - The Executive Direction will install itself in the place that to judge more adequate
to the exercise of its functions.
ARTICLE 15th
The ITAIPU will be able to assume obligations or only to constitute solicitors by means of the joint
signature of two Generals-Directors.
ARTICLE 16th
The fees of the Council members and the Members of the Executive Direction will be fixed by the
ELETROBRÁS and for the ANDE, of common agreement.
ARTICLE 17th
Two Generals-Directors are responsible, solidarity, for the coordination, organization and directionof the activities of the ITAIPU and will represent it, in judgment or is of it, competing to them
practicing all the necessary acts of ordinary management to the functioning of the Entity, with
exclusion of the attributed ones to the Council of Administration and the Executive Direction. They
fit to them, besides, the acts of admission and resignation of staff in its respective countries.

ARTICLE 18th
The Director Executive Technician is responsible for the conduction of the project and theconstruction of the work and operation of the installations.
ARTICLE 19th
The Executive Legal Director is the responsible one for the conduction of the legal subjects of the
Entity.
ARTICLE 20th
The Executive Administrative Director is the responsible one for the Administration of the staff andthe direction of the general services.
ARTICLE 21st
The Executive Financial Director is responsible for the execution of the politics the economicfinancier, supplement and purchases.
ARTICLE 22nd
The Executive Director of Coordination is the responsible one for the services related with thepreservation of the environment conditions in the area of the reservoir, the port execution of the
projects and work and of navigation, the execution of the projects and infrastructure work, of theways of access, the residential villages and other services and work will be attributed to it by the
Executive Direction is of the area of the installations destined to the production of electric energy.

ARTICLE 23rd
The Directors will have the specific executive attributions that, of common agreement, will bedelegated to them by the Executive Directors of the respective areas, with sights to the perfectachievement of the objectives of the Binational Entity.
Unique Paragraph: The Directors will remain informed of the subjects of the respective Directions
and will inform on the course of that they will be trusted to them.
CHAPTER IV
Financier Exercise
ARTICLE 24th
The financier exercise will be locked in 31 of December of each year.
Paragraph 1st - The ITAIPU will present, up to 30 of April of each year, for decision of the
ELETROBRÁS and of the ANDE, the Annual Report, the General Balance Sheet and thedemonstration of Account Results of the previous exercise.
Paragraph 2nd - The ITAIPU will adopt the currency of the United States of America as reference
for the accounting of its operations. This reference could be substituted by another one, by meansof agreement between the two Governments.
CHAPTER V
General Disposals
ARTICLE 25th
Will be incorporated by the ITAIPU, as payment of subscribed capital on the part of the
ELETROBRÁS and of the ANDE, expenditure for the related companies, previously to theconstitution of the Entity, in the following works:a) resultant studies of the Accord of Cooperation firmed in 10 of April of 1970;b) preliminary work and services related with the construction of the hydroelectric exploitation.
ARTICLE 26th
The Council members, and Members of the Executive Direction and will not be able to exert
functions of direction, administration or consultation in supplying or contracting companies of any
materials and services used by ITAIPU.
ARTICLE 27th
Will be able to give to services to the ITAIPU the public officers, employees of autarchies and ofsociety of mixing economy, Brazilians or Paraguayans, without loss of the original bond and thebenefits of retirement and/or social welfare, having in account the respective national legislation.
ARTICLE 28th
The Internal Regulation of the ITAIPU, mentioned in the Article 9th, will be approved by the
Executive Direction to the approval of the Council of Administration and will contemplate, among
others, the following subjects: of the countable and financial regimen; the regimen for theattainment of proposals, adjudication and act of contract of services and work, the acquisition ofgood, norms for the exercise of the functions of the integral ones of the Council of Administrationand the Members of the Executive Direction.
ARTICLE 29th
The cases foreseen in this Statute, that could not be decided by the Council of Administration, will
not be solved by the two Governments, with previous seeming of the ELETROBRÁS and of theANDE.
2. The Statute approved for the present Agreement will have validity from the date of 17 of May of
1986 up to 17 of May of 1991.
3. In this date, by means of new Agreement, both the Governments will adopt the decision that tojudge convenient on the Annex A (Statute of the ITAIPU).
4. The present Note and of Your honor, identical text and same date, constitutes Agreement
between the two Governments.
Taking the opportunity to renew Your honor the protests of my higher consideration.

(a)Olavo Egydio Setúbal(Published in "Official Gazette" of 02.20.1986, p. 2.703-06.)

PREVIOUS
ANNEX A
TO THE TREATY OF ITAIPU(STATUTE OF THE ITAIPU)(Asuncion, 12.27.1991)
Asuncion, in 27 of December of 1991.
NR 336Your Excellency Mr.
Professor Doctor Aléxis Frutos Vaesken,
Minister of Foreign Affairs
Sir Minister,With reference to the paragraphs first and second of the Note NR 146, 14 of May of 1991, and to
the Revertive Note NR 1, of identical content and same date, the Ministry of Foreign Affairs of the
Republic of Paraguay, and leading in account what it makes use article III, paragraph 2nd of theTreaty of Itaipu, I have the honor to lead to the knowledge of Your excellency that theGovernment of Brazil agrees to the Government of Paraguay to modifying the Annex (Statute of
the ITAIPU) of the form as the present consists in annex Note.
2. The new Statute will have validity from 17 of May of 1992, as foreseen in its Article 31. In these
conditions, it is extending until that date the validity of the current Statute.
3. The present Note and of Your honor, identical text and same date, constitutes an Agreementbetween the two Governments. I use to advantage the chance to renew Your honor the protests of
my higher consideration.
C. E. ALVES DE SOUZA
Ambassador of Brazil
PARAGUAY –REVERTIVE NOTE N.R Nº 17, of 12.27.1991.
STATUTE OF THE ITAIPU
CHAPTER I - Denomination and Object
ARTICLE 1st - The ITAIPU is a binational entity created by Article III of the Treaty one signed by
Brazil and Paraguay, in 26 of April of 1973, and has as parts:a) the Centrais Elétricas Brasileiras S.A. - ELETROBRÁS, anonymous society of the Brazilian mixing
economy;b) the Administración Nacional de Eletricidad - ANDE, Paraguayan autarchic entity.
ARTICLE 2nd - The object of the ITAIPU is the hydroelectric exploitation of the hydraulics
resources of the Paraná riverbed, pertaining in condominium to the two countries, since and also
the Salto Grande de Sete Quedas or Salto del Guaíra until the estuary of the Iguaçu river.
ARTICLE 3rd - The ITAIPU will be conducted for the norms established in the Treaty of 26 of Aprilof 1973, in the present Statute and the excessively Annexes ones.
ARTICLE 4th - The ITAIPU will have, in accordance with what it makes use the Treaty and the its
Annexes, legal, financial and administrative capacity, and also responsibility technique, to study,
to project, to direct and to execute the works that have as object, to place them in functioning andto explore them, being able, for such effect, to acquire rights and to contract obligations.
ARTICLE 5th - The ITAIPU will have headquarters in Brasília, Capital of the Federative Republic of
Brazil, and Asuncion, Capital of the Republic of Paraguay.
CHAPTER II - Capital
ARTICLE 6th - The capital of the ITAIPU will be equivalent USS 100.000.000,00 (one hundred
million dollar of the United States of America), pertaining to the ELETROBRÁS and to ANDE inequal and non-transferable parts.
Unique paragraph - The capital will be remained with constant value in accordance with made use
in the paragraph 4th of Article 15 of the Treaty.
CHAPTER III - Administration
ARTICLE 7th - Are agencies of the administration of the ITAIPU the Council of Administration andthe Executive Direction.
ARTICLE 8th - The Council of Administration will be composed in twelve nominated Council
members:a) six for the Brazilian Government, of which one will be the Brazilian General Director, one will be
indicated by the two Ministry of Foreign Affairs and one will be indicated for the ELETROBRÁS;b) six for the Paraguayan Government, of which one will be the Paraguayan General Director, onewill be indicated Ministry of Foreign Affairs and one for the ANDE;
Paragraph 1st - The meetings of the Council will be presided over, alternatingly, for a Council
member of Brazilian nationality or Paraguayan and, rotating, for all the members of the Council.
Paragraph 2nd - The Council will nominate two Secretaries, a Brazilian and another Paraguayan,
who will have its position, among others attributions, to certify documents of the ITAIPU in
Portuguese and Spanish, respectively.
ARTICLE 9th - Compete to the Council of Administration to fulfill and to make to fulfill Treaty andthe its Annexes and to decide on:a) the politics and basic lines of direction of the ITAIPU;b) the Internal Regulation, the Manual of Organization, the General Norm of Licitation and theRegulation of Staff;c) the proposal of budget for each exercise and its revisions presented for Generals Directors;d) the plan and the annual program of auditorship;e) the acts that matter in alienation of the patrimony of the ITAIPU, with previous seeming of the
ELETROBRÁS and the ANDE;f) the reevaluations of asset and liabilities, with previous seeming of the ELETROBRÁS and of theANDE, having in account made use in the paragraph 4th of article XV of the Treaty;g) the bases of installment of the electricity services;h) the referring proposals of the Executive Direction the obligations and loans;i) the necessary modifications in the organizational structure in the corresponding levels or
equivalents the joint supervision and departments for proposal of Generals directors.
Paragraph 1st - The Council of Administration will examine the Report Annual, the General Balance
Sheet, and the demonstration of Account of the Results, elaborated for the Executive Direction,
and will present them with its to seem, to the ELETROBRÁS and to ANDE, in agreement made use
in the Article 26th of this Statute.
Paragraph 2nd - The Council of Administration will take knowledge of the course of the subjects of
the ITAIPU through the expositions that will be made habitually by Brazilian General Director
and/or Paraguayan General Director or of that the Council requests for intermediary of them.
ARTICLE 10th - The council of Administration will congregate itself, usually, each two months
and, extraordinary, when convoked, for intermediary of the Secretaries, by the Brazilian General
Director and/or by the Paraguayan General Director or the half but one of the Council members.
Unique paragraph - The Council of Administration only will be able to decide with validity with thepresence of the majority of the Council members of each country and with equal parity of votes tothe lesser present national representation.

ARTICLE 11th - The Council members will exert its functions for a period of four years, having
been able to be led back.
Paragraph 1st - At any time the Governments will be able to substitute the Council members
whom they will have nominated.
Paragraph 2nd - When occurring definitive avoidance of a position of Council member, therespective Government will nominate substitute who will exert the mandate for the remaining
stated period.
ARTICLE 12th - The Executive Direction, constituted of national Members of both the countries,
in equal number and with the same capacity and equal hierarchy, will be composed in Brazilian
General Director, Paraguayan General Director, and of the Directors of Engineering and Operation,of Maintenance and Work, Financial, of Suppliments, Administrative Brazilian, and Administrative
Paraguayan.
Paragraph 1st - The members of the Executive Direction will be nominated by the respective
Governments.
Paragraph 2nd - The members of the Executive Direction will exert its functions for a period five
year, being able to be led back.
Paragraph 3rd - At any time the Governments will be able to substitute the Members of the
Executive Direction that they will have nominated.
Paragraph 4th - In case of absence or temporary impediment of a Member of the Executive
Direction, this will be substituted by other indicated by General-Director of the same nationality,
this will indicate to the Executive Direction its substitute enters the directors of its nationality.
Paragraph 5th - When occurring definitive avoidance of a position of Member of the Executive
Direction, the respective Government, as the case, will indicate the substitute who, a nominatedtime, will exert the mandate for the remaining stated period.
ARTICLE 13th - Are attributions and duties of the Executive Direction:a) to give fulfillment to Treaty and the its Annexes and to the decisions to the Council of
Administration;b) to fulfill and to make to fulfill the Internal Regulation;c) to consider to the Council of Administration the politics and basic lines of direction ofadministration;d) to analyze and to submit the Council of Administration, in each exercise, the proposal of budget
for the following exercise and its eventual revisions;e) to analyze and to submit to the Council of Administration the Annual Report, the General
Balance Sheet and the demonstration of Account of Results of the previous exercise;f) to put in execution the norms and the bases for installment of the electricity services;g) to approve the acts that imply obligations for the ITAIPU, that is considered by GeneralsDirectors, such as to seem of commissions of judgment of licitations;h) to approve the joint proposals of Generals Directors on norms and administrative proceduresthat involve all the Entity, such as the norms of staff administration.
ARTICLE 14th - The Executive Direction will be congregated, ordinary, at least one times to themonth and, extraordinary, when convoked for one of Generals-Directors.
Paragraph 1st - The resolutions of the Executive Direction will be adopted by majority of votes.
Paragraph 2nd - The Executive Direction will install itself in the place that to judge more adequate
to the exercise of its functions.
ARTICLE 15th - The ITAIPU will be able to assume obligations or only to constitute solicitors bymeans of the joint signature of two Generals-Directors.
ARTICLE 16th - The fees of the Council members and the Members of the Executive Direction will
be fixed by the ELETROBRÁS and by the ANDE, of common agreement.
ARTICLE 17th - Are attributions of the Generals-Directors:(A) Jointlya) to practice, solidarity, all the necessary acts of administration to the conclusion and thefunctioning of the Entity, planning, organizing, coordinating, directing and controlling theexecution of the politics and plans of administration approved by the Executive Direction andexecuted by the too much Directions in the scope of its ability, with exclusion of the attributed
ones to the Council of Administration and the Executive Direction;b) to coordinate the process of identification and elaboration of politics and basic lines of directionof administration of the ITAIPU for appreciation of the Executive Direction, and approval of theCouncil of Administration;c) to coordinate the process of elaboration of the work plan and annual budget of the ITAIPU;d) to coordinate the elaboration of the plans, norms and administrative procedures of the ITAIPU,
such as the norms staff administration;e) to coordinate the elaboration and update of the Internal Regulation, the Manual of Organization,
the General Norm of Licitation and the Regulation of Staff;f) to define the organizational structure and the nationality of the managers of the agencies thedivision level;g) to all assign the controlling of and any management position, except of directors;h) to represent the Binational one in judgment or and out of it.
B) Separatelya) to admit and dismiss staff from its respective nationality;b) to represent the ITAIPU Binacional in judgment or and out of it.
ARTICLE 18th - The Director Executive Technician is responsible for the conduction of the project
and the construction of the work and operation of the installations.
ARTICLE 19th - The Executive Legal Director is the responsible one for the conduction of thelegal subjects of the Entity.
ARTICLE 20th - The Executive Administrative Director is the responsible one for the
Administration of the staff and the direction of the General Services.
ARTICLE 21st - The Executive Financial Director is responsible for the execution of the politics
the economic-financier, supplement and purchases.
ARTICLE 22nd - The Executive Director of Coordination is the responsible one for the services
related with the preservation of the environment conditions in the area of the reservoir, the port
execution of the projects and work and of navigation, the execution of the projects andinfrastructure work, of the ways of access, the residential villages and other services and work will
be attributed to it by the Executive Direction is of the area of the installations destined to the
production of electric energy.
ARTICLE 23rd - The Directors will have the specific executive attributions that, of common
agreement, will be delegated to them by the Executive Directors of the respective areas, withsights to the perfect achievement of the objectives of the Binational Entity.

Unique paragraph: The Directors will remain informed of the subjects of the respective Directions
and will inform on the course of that they will be trusted to them.
CHAPTER IV
Financial Exercise
ARTICLE 24th - The Financial exercise will be locked in 31 of December of each year.
Paragraph 1st - The ITAIPU will present, up to 30 of April of each year, for decision of the
ELETROBRÁS and of the ANDE, the Annual Report, the General Balance Sheet and thedemonstration of Account Results of the previous exercise.
Paragraph 2nd - The ITAIPU will adopt the currency of the United States of America as reference
for the accounting of its operations. This reference could be substituted by another one, by meansof agreement between the two Governments.
CHAPTER V
General Disposals
ARTICLE 25th - Will be incorporated by the ITAIPU, as payment of subscribed capital on the partof the ELETROBRÁS and of the ANDE, the expenditure realized for the related companies,
previously to the constitution of the Entity, in the following works:a) resultant studies of the Accord of Cooperation firmed in 10 of April of 1970;b) preliminary work and services related with the construction of the hydroelectric exploitation.
ARTICLE 26th - The Council members, Members of the Executive Direction and other employees
will not be able to exert functions of direction, administration or consultation in supplying orcontracting companies of any materials and services used by ITAIPU.
ARTICLE 27th - Will be able to give to services to the ITAIPU the public officers, employees ofautarchies and of society of mixing economy, Brazilians or Paraguayans, without loss of theoriginal bond and the benefits of retirement and/or social welfare, having in account the respective
national legislation.
ARTICLE 28th - The Internal Regulation of the ITAIPU, mentioned in the Article 9th, will beconsidered by the Executive Direction to the approval of the council of Administration and willcontemplate, among others, the following subjects: of the countable and financial regimen; theregimen for the attainment of proposals, adjudication and act of contract of services and work, theacquisition of good, norms for the exercise of the functions of the integral ones of the Council of
Administration and the Members of the Executive Direction.
ARTICLE 29th - The cases foreseen in this Statute, that could not be decided by the Council of
Administration, will not be solved by the two Governments, with previous seeming of the
ELETROBRÁS and of ANDE.
2. The Statute approved for the present Agreement will have validity from the date of 17 of May of
1986 up to 17 of May of 1991.
ANNEX A
TO THE TREATY OF ITAIPU(STATUTE OF THE ITAIPU)(Brasília, 04.26.1973)
CHAPTER I
Denomination and Object
Article I
The ITAIPU is a binational entity created by Article III of the Treaty signed by Brazil and Paraguay,

in 26 of April of 1973, and has as parts:a) the Centrais Elétricas Brasileiras S.A. - ELETROBRÁS, anonymous society of the Brazilian mixing
economy;b) the Administración Nacional de Eletricidad – ANDE, Paraguayan autarchic entity.
Article II
The object of the ITAIPU is the hydroelectric exploitation of the hydraulics resources of the Paraná
riverbed, pertaining in condominium to the two countries, since and also the Salto Grande de Sete
Quedas or Salto del Guaíra until the estuary of the Iguaçu river.
Article III
The ITAIPU will be conducted for the norms established in the Treaty one to 26 of April of 1973, inthe present Statute and the excessively Annexes ones.
Article IV
The ITAIPU will have, in accordance with what they make use Treaty and the its Annexes, legal,financial and administrative capacity, and also responsibility technique, to study, to project, todirect and to execute the works that have as object, to place them in functioning and to explore
them, being able, for such effect, to acquire rights and to contract obligations.
Article V
The ITAIPU will have headquarters in Brasilia, Capital of the Federative Republic of Brazil, and in
Asuncion, Capital of the Republic of Paraguay.
CHAPTER II
Capital
Article VI
The capital of the ITAIPU will be equivalent USS 100.000.000,00 (one hundred million dollar of theUnited States of America), pertaining to the ELETROBRÁS and to ANDE in equal and nontransferable parts.
Unique paragraph - The capital will be remained with constant value in accordance with made use
in the paragraph 4th of Article XV of the Treaty.
CHAPTER III
Administration
Article VII
Are agencies of the administration of the ITAIPU the Council of Administration and the Executive
Direction.
Article VIII
The Council of Administration will be composed in twelve nominated Council members:a) six for the Brazilian Government, of which one will be indicated by Ministry of Foreign Affairs
and two for the ELETROBRÁS;b) six for the Paraguayan Government, of which one will be indicated by the Ministry of Foreign
Affairs and two for the ANDE;
Paragraph 1st - The Brazilian General Director and the Paraguayan General Director, foreseen in
the article 12th, also will integrate the Council, with voice and without vote.
Paragraph 2nd - The meetings of the Council will be presided over, alternating, for a Council
member of Brazilian nationality or Paraguayan and, rotating, for all the members of the Council.
Paragraph 3rd - The Council will nominate two Secretaries, a Brazilian and another Paraguayan,
who will have its position, among others attributions, to certify documents of the ITAIPU in
Portuguese and Spanish, respectively.
Article IX
Compete to the Council of Administration to fulfill and to make to fulfill Treaty and the its Annexes
and to decide on:a) the basic lines of direction of administration of the ITAIPU;b) the Internal Regulation;c) the plan of organization of the basic services;d) the acts that matter in alienation of the patrimony of the ITAIPU, with previous seeming of the
ELETROBRÁS and of the ANDE;e) the reevaluations of asset and liabilities, with previous seeming of the ELETROBRÁS and of theANDE, having in account made use in the paragraph 4th of the Article XV of the Treaty;f) the bases of installment of the electricity services;g) the referring proposals of the Executive Direction the obligations and loans;h) the proposal of budget for each exercise and its revisions, presented for the Executive
Direction.
Paragraph 1st - The Council of Administration will examine the Report Annual, the General Balance
Sheet and the demonstration of Account of the Results, elaborated for the Executive Direction, andwill present them with its to seem, to the ELETROBRÁS and to ANDE, in agreement made use in
the Article XXIV of this Statute.
Paragraph 2nd - The Council of Administration will take knowledge of the course of the subjects of
the ITAIPU through the expositions that will be made habitually by General Director or of that theCouncil requests for intermediary of them.
Article X
The Council of Administration will congregate, usually, each two months and, extraordinary, when
convoked, by intermediary of the Secretaries, by the General Director or for the half but one of
the Council members.
Unique paragraph - The Council of Administration only will be able to decide with validity with thepresence of the majority of the Council members of each country and with equal parity of votes tothe lesser present national representation.

Article XI
The Council members will exert its functions for a period of four years, having been able to be led
back.
Paragraph 1st - At any time the Governments will be able to substitute the Council members
whom they will have nominated.
Paragraph 2nd - When occurring definitive avoidance of a position of Council member, therespective Government will nominate substitute who will exert the mandate for the remaining
stated period.
Article XII
The Executive Direction, consisting of national Members of both the countries, in equal number
and with the same capacity and equal hierarchy, will be composed of the General Director and of
the Technician, Legal, Administrative, Financial and of Coordination Directors.
Paragraph 1st - To each Director it will correspond an Adjunct Director of Brazilian or Paraguayan,
different nationality of the one of the bearer.
Paragraph 2nd - The Adjunct Directors and the Directors will be nominated by the respective
Governments, for proposals of the ELETROBRÁS or of the ANDE, in agreement the case.
Paragraph 3rd - The Adjunct Directors and the Directors will exert its functions for a period five
year, being able to be led back.
Paragraph 4th - At any time the Governments will be able to substitute the Members of the
Adjunct Directors and the Directors that they will have nominated.
Paragraph 5th - In case of absence or temporary impediment of a Director, the ELETROBRÁS or
the ANDE, in agreement the case, will assign the substitute amongst the too much Directors, whowill have also right to the vote of the substituted Director.
Paragraph 6th - When occurring definitive avoidance of a position of Director, the ELETROBRÁS or
the ANDE, in agreement the case, will indicate the substitute who, a nominated time, will exert the
mandate for the remaining stated period.
Article XIII
Are attributions and duties of the Executive Direction:a) to give fulfillment to Treaty and the its Annexes and to the decisions to the Council of
Administration;b) to fulfill and to make to fulfill the Internal Regulation;c) to practice the necessary acts of administration to the conduction of the subjects of the Entity;d) to consider to the Council of Administration the basic lines of direction of administration;e) to consider to the Council of Administration norms of administration of the staff;f) to elaborate and to submit the Council of Administration, in each exercise, the proposal ofbudget for the following exercise and its eventual revisions;g) to elaborate and to submit to the Council of Administration the Annual Report, the General
Balance Sheet and Demonstration of Account of Result of the previous exercise;h) to put in execution the norms and the bases for installment of the electricity services;i) to create and to install the offices administrative technician and/or who to judge necessary,
where he will be convenient;
Article XIV
The Executive Direction will congregate itself, usually, at least two times to the month and,unusually, when convoked for General-Director or request, to this, of one of the Directors.
Paragraph 1st - The resolutions of the Executive Direction will be adopted by majority of votes,
fitting to General-Director the vote of stalemate.
Paragraph 2nd - The Executive Direction will install itself in the place that to judge more adequate
to the exercise of its functions.
Article XV
The ITAIPU only will be able to assume obligations or to constitute solicitors by means of the joint
signature of General Director and of another Director.
Article XVIThe fees of the Council members and the Members of the Executive Direction will be fixed by the
ELETROBRÁS and for the ANDE, of common agreement.
Article XVIIThe General Director is the responsible one, for the coordination, organization and direction of theactivities of the ITAIPU and will represent it in judgment or is of it, competing to it practicing all
the necessary acts of usual administration to the functioning of the entity, with exclusion of theattributed ones to the Council of Administration and the Executive Direction. They fit to it, besides,
the acts of admission and resignation of staff.
Article XVIIIThe Director Technician is the responsible one for the conduction of the project, construction of
the work and operation of the installations.
Article XIX
The Legal Director is the responsible one for the conduction of the legal subjects of the Entity.
Article XX
The Administrative Director is the responsible one for the administration of the staff and the
direction of the general services.
Article XXIThe Financial Director is responsible for the execution of the politics the economic-financier,suppliment and purchases.
Article XXIIThe Director of Coordination is the responsible one for the conduction of the administrative
management before the authorities of the two countries.
Article XXIII
The Adjunct Directors will have the attributions that, of common agreement with the respective
bearers, them they will be for these commission agents.
Paragraph 1st - The Adjunct Directors will remain themselves informed of the subjects of therespective Directions and will inform on the course of that they will be trusted to them.
Paragraph 2nd - The Adjunct Directors will attend the meetings of the Executive Direction, withvoice and without vote.
CHAPTER IV
Financial Exercise
Article XXIV
The financial exercise will be locked in 31 of December of each year.
Paragraph 1st - The ITAIPU will present, up to 30 of April of each year, for decision of the
ELETROBRÁS and of ANDE, the Annual Report, General Balance Sheet and the demonstration of
Account of Results of the previous exercise.

Paragraph 2nd - The ITAIPU will adopt the currency of the United States of America as reference
for the accounting of its operations. This reference could be substituted by another one, by meansof agreement between the two Governments.
CHAPTER V
General Disposals
Article XXVWill be incorporated by the ITAIPU, as payment of subscribed capital on the part of the
ELETROBRÁS and of the ANDE, the expenditure realized for the related companies, previously tothe constitution of the Entity, in the following works:a) resultant studies of the Accord of Cooperation firmed in 10 of April of 1970;b) preliminary work and services related with the construction of the hydroelectric exploitation.
Article XXVIThe Council members, Directors, Adjunct Directors and others employees will not be able to exert
functions of direction, administration or consultation in supplying or contracting companies of any
materials and services used by ITAIPU.
Article XXVIIWill be able to give to services to the ITAIPU the public officers, employees of autarchies and ofsociety of mixing economy, Brazilians or Paraguayans, without loss of the original bond and thebenefits of retirement and/or social welfare, having in account the respective national legislation.
Article XXVIIIThe Internal Regulation of the ITAIPU, mentioned in the Article IX, will be considered by the
Executive Direction to the approval of the Council of Administration and will contemplate, among
others, the following subjects: of the countable and financial regimen; the regimen for theattainment of proposals, adjudication and act of contract of services and work, the acquisition ofgood, norms for the exercise of the functions of the integral ones of the Council of Administrationand of the Executive Direction.
Article XXIX
The cases foreseen in this Statute, that could not be decided by the Council of Administration, will
not be solved by the two Governments, with previous seeming of the ELETROBRÁS and of the
ANDE.
(Published in “Official Gazette” of 08.30.1973, p. 8.643-44.)