Exchange of Notes constituting an Agreement for the construction of a hydroelectric plant in Cachuela Esperanza, supplementary to the Agreement on economic and technical cooperation.

Objective of the exchange of notes is the construction of a hydroelectric plant at Cachuela Esperanza, on the Beni River. The plant has an estimated generating capacity of 40 MW. The Governments of Brazil and Bolivia shall undertake to share the cost of the final design and other additional engineering costs in proportion to their respective energy needs. A contract shall be concluded by enterprises of the two countries for the purchase and sale of the power produced by the plant and shall remain in force for twenty-five years from the date of first electrical supply. This term may be extended by agreement between the Parties. The Government of Bolivia, with the cooperation and support of the Government of Brazil, shall be responsible for obtaining the necessary financing for the construction of the hydroelectric plant and other related engineering costs, up to the point of electrical energy supply.