Treaty between the Federative Republic of Brazil and the Republic of Paraguay concerning the hydroelectric utilization of the water resources of the Paraná River owned in condominium by the two countries, from and including the Salto Grande de Sete Quedas or Salto del Guaira.

The Parties agree to utilize for hydroelectric purposes, jointly and in accordance with the provisions, of this Treaty and the annexes thereto, the water resources of the Paraná River owned in condominium by the two countries, from and including the Salto Grande de Sete Quedas, or Salto del Guairá, to the mouth of the Iguassu River. A binational hydropower entity, called ITAIPU, is created by this Treaty. The Treaty sets out the arrangements under which ITAIPU shall operate. The High Contracting Parties authorize ITAIPU to undertake, during the period of validity of this Treaty, the hydroelectric utilization of the specified stretch of the Paraná River. The energy produced by the hydroelectric utilization scheme referred to in this Treaty shall be divided into equal parts between the two countries and each one shall have the right to acquire, in the manner laid down in this Treaty, the energy not utilized by the other country for its own consumption.