Answer Happy

Claudia Coser Business School - PUCPR Kleber Vanolli Itaipu Binacional History Itaipu Binacional was created in 1974 to manage the construction of a hydroelectric plant (called the Itaipu Dam) that was structured as "an international company." Today, the Itaipu Dam is recognized as "the world's larg- est generator of renewable clean energy." Initially, the Brazilian government was assigned to raise funds for the project, which was financed by short- term credit from private financial institutions and for- eign government banks. The debt, which approximated $16 billion in U.S. dollars, is to be repaid by 2023 when the Itaipu Treaty is set to expire. The Itaipu Treaty is the legal instrument that was signed by Brazil and Paraguay in 1973 to permit the "exploitation" of the Paraná River by the two countries for the purpose of generating energy for the countries' needs. The Itaipu Treaty's origination coincided with the global crisis that surfaced because of the dramatic increase in oil prices that occurred in the early 1970s. At this time, research of renewable energy sources intensified in order to ensure the availability of energy sources in Brazil and Paraguay. The plant dou- bles the capacity of power generation in Brazil, meeting 26 percent of the country's power demand. Paraguay had an increase in its GDP, from only 5 percent in 1975 to 10.8 percent in 1978. The enhanced commercial activity increased Paraguay's demand for power. The construction of the Itaipu Binacional hydroelec- tric power plant, also known as the Itaipu Dam, was lik- ened to a labor of Hercules by the American magazine Popular Mechanics. Moreover, in 1994, the American 208 Society of Civil Engineers chose the Itaipu Dam as "one of the seven modern Wonders of the World." During the actual construction process, the region where it was built became a beehive of activity. Between 1975 and 1978, more than 9,000 houses were built on both sides of the Paraná River at the border between Brazil and Paraguay to provide living residences for the men working in the project. At the time, the net result of the building activity was that the population of Iguassu Falls increased from roughly 20,000 to almost 102,000 inhabitants. In total, Itaipu Binacional created jobs for about 40,000 workers at the construction site and in support offices in Brazil and Paraguay. The dam works were completed and the canal's gates closed in the late fall of 1982. In November of that year, the president of Brazil, João Figueiredo, and the president of Paraguay, Alfredo Stroessner, triggered the mechanism that lifted the 14 floodgates and released dammed water from the Paraná River. Releasing the water formally launched the operations of the world's largest hydroelectric dam. Filling the reservoir affected the lives of thousands of people who lived on the banks of the Paraná River between Iguassu Falls and Guaira. The inhabitants of Iguassu Falls saw the empty river downstream of the dam because of the closure of the gates, while Guaira residents mourned the flooding of Seven Falls. Over the 170 km of land that was submerged between the two cities, a total of 8,519 urban and rural properties were flooded on the Brazilian side. The indemnities paid at Vividfour/Shutterstock.com
Case 16: Itaipu Binacional the time to compensate residents for their losses totaled $209 million. Itaipu as part of Brazil's Energy Matrix: Institutional Regulatory Pressures The Brazilian energy model (called the "energy matrix") is considered the cleanest in the world. According to the United Nations Program for the Environment (UNEP), almost 46 percent of all energy used in Brazil comes from clean sources including biomass, ethanol, wind, and solar. However, hydroelectric power generates over 75 percent of the electricity used in Brazil. The 46 percent of Brazil's energy use accounted for by clean sources is far supe- rior to the average of 13 percent renewable sources in the world's industrialized countries (and falling to 6 percent within developing nations). Moreover, estimates are that the current amount of power generated by hydroelectric power in Brazil is roughly one third of its potential. During the Conference of the World Summit on Sustainable Development in Johannesburg in 2002, sci- entists and other participants concluded that all hydro- electric power generation is renewable. This assessment was ratified in 2003 during the third World Water Forum that was held in Kyoto, Japan. The arguments for rec- ognizing hydroelectricity as a highly desirable energy source include the following: 1. It is a renewable source of energy that uses the energy of flowing water with no reduction in the water's quantity. 2. It enables the use of other renewable energy sources, offering at the same time operational flexibility in response to fluctuations in the demand for electric- ity. The flexibility and storage capacity of hydroelec- tric power plants have made them the most efficient and economical in support of the use of intermittent sources of renewable energy such as solar or wind power. 3. It promotes energy security and price stability for a host nation, given that the water of the rivers is a domestic resource. 4. It contributes to the storage of drinking water. The hydroelectric plant reservoirs collect rainwater, which also can be used for consumption or irrigation. 5. Its lifecycle produces very small amounts of green- house gases (GHG). 6. Over the long term, the technologies used to produce hydroelectricity have become well known and are considered to be proven. In this regard, the effects of 209 generating hydroelectricity are clearly understood, as are the techniques used to effectively manage those effects. 7. A hydropower plant has an average lifespan of 50 to 100 years. Within a plant's lifespan though, new tech- nologies can be added for the purpose of enhanc- ing the plant's efficiency and effectiveness. In con- trast, a thermal plant's lifespan is far shorter at close to 30 years; incorporating the latest technological developments in these plants is more complicated compared to doing so in hydroelectric plants. 8. The hydroelectric projects that are developed and operated in an economically viable, environmen- tally sensible and socially responsible way repre- sent sustainable development in its finest form. In fact, the World Commission on Environment and Development recognized in 1987 that effectively designed and established hydroelectric projects rep- resent "development (that meets) the needs of people today without compromising the ability of future generations in meeting their own needs." As a hydroelectric plant, the Itaipu Dam produces an average of 90 million megawatt-hours of power annu- ally. This output is equivalent to the daily production of 536,000 barrels of oil or 47 million m3 of gas, and is equal to 25 percent of the domestic oil production in Brazil. If the significant amount of energy produced by the Itaipu dam were generated through other, less environmentally friendly means such as oil, approximately 38 million tons of carbon dioxide (CO₂) would be released into the atmo- sphere annually. If the same amount of Itaipu-based energy were generated by coal, CO₂ emissions would reach 85 mil- lion tons per year. A person working in the construction industry once commented about the Itaipu Dam's output: "God has been generous toward the Brazilians, and Saint Peter has cooperated greatly in recent years in keeping the reservoirs at enviable levels for the pro- duction of hydropower. But we should not count only on that. In order to grow at rates of 5 percent or 6 percent annually, Brazil has to do much more than it has done in the field of production and transmission of electricity. It is time to think about the future. We have been through several scares. In the late 1990s we had worrying blackouts and in 2001, we experienced a terrifying energy crisis. The country had to experience severe electricity rationing, which has succeeded only because of the extraordinary capacity of understanding and cooperation of our people." Still, roughly 72 percent of Brazil's hydroelectric potential remains untapped. Affecting the possibility of
tapping more of this capacity in Brazil are the obstacles associated with the growing environmental and socio- economic restrictions toward new projects. A bottle- neck between the electrical and environmental planning delays implementation of hydropower projects. The criti- cal path for many industry experts is the environmental licensing. One reason for the delays is the fact that the electric sector in Brazil has experienced many changes over the past 15 years. Absolute control of the State was the reality until the early 1990s when privatization processes were initiated. Because of the power rationing that occurred in 2001, long-term planning became a priority in 2004 with the main goal of providing the country with alter- natives to balance supply and demand, combining two ministries for the purpose of being able to do so: Mines and Energy (MME) and the Environment (MMA). In part, these ministries were created to positively address the bureaucratic challenges as well as the increas- ing financial expenses associated with applying for and receiving environmental approval for licenses to develop new hydroelectric projects. Another reality was that the large state-owned power plants discourage hydroelectric investors who fear unfair competition, financing condi- tions, and high taxes. Evidence shows that the process associated with the environmental licensing process for a hydroelectric plant is more complicated and time-consuming (up to 1200 days) than the process associated with a thermo- electric licensing process, which is only a few months. Thermoelectric power plants use plant oil, diesel, and coal; plants using gas and sugarcane pulp bagasse were considered to rely on alternative sources of energy. The coal power plants and diesel engines negatively affect the atmosphere with pollution and produce very expensive energy due to the fuel price. The decisive factor is to select the thermoelectric plants with a more attrac- tive cost/benefit outcome. This positive outcome can be reached by taking into account the investment cost and the additional cost when the plant operates, using fuel, to calculate costs and benefits. Brazil's energy matrix fea- tures a strong renewable component; at the same time however, the country fails to maintain appropriate opera- tional standards, the result being that the thermal power plants operate at relatively low levels of efficiency. Itaipu and Sustainability: The Normative Institutional Pressures The 2002 World Summit on Sustainable Development established that sustainable development is built on "three interdependent and mutually supportive pillars:" Economic Development, Social Development, and Environmental Protection. The concept of sustainable development applied to the energy sector comprises the implementation of measures to meet the current demand for energy and to guarantee the availability of energy sources for future generations. From a technological basis, Brazil holds the third largest hydropower potential functionality in the world, behind only China and Russia. It is also important to note that when considering the cost of hydropower as a means of competitively generating energy supplies, Brazil has a great potential for expansion of generation capacity via hydroelectricity. Many developing countries do not use hydropower. Nonetheless, hydroelectricity accounts for some level of power generation in 159 coun- tries across the world. Five countries account for more than half of the global hydropower production: China, Canada, Brazil, the United States, and Russia. Participants in the Symposium on Hydropower and Sustainable Development of the United Nations, held in October of 2004, took the following position: "Having considered the social, economic and environmen tal benefits of hydropower and its potential contribution in achieving sustainable development goals, we firmly believe that there is a need to develop hydroelectricity which is economically, socially and environmentally sustainable." A "Guidelines for Sustainability" document was pub- lished by The International Hydropower Association (IHA) in 2004. These guidelines, which were actually presented during the UN Symposium, were built on the core values identified in the final report of the World Commission on Large Dams (November, 2000): equity, efficiency, participatory decision-making, sustainability and transparency (accountability). The purpose of the IHA Guidelines was to "promote greater consideration of environmental, social and economic sustainability in the evaluation of new hydroelectric projects and the management and operation of power plants." While establishing a code of "effective or good" practices for the hydropower sector is important, more must be done to fully satisfy expectations. Indeed, the IHA has developed the Protocol of the Hydropower Sustainability Assessment, a tool that is used to objec- tively analyze proposed hydropower projects and evalu- ate the effectiveness and efficiency of existing plants. The Protocol was adopted as a working document in 2006. The Guidelines and Sustainability Assessment Protocol of the International Hydropower Association established an international reference standard for
Case 16: Itaipu Binacional developing and operating hydropower and was based on the commitment of the members of the IHA to continu- ous improvement within the full context of sustainable development. According to the Executive Technical Director of Itaipu: "The thermoelectric and hydroelectric projects are dif ferent in important respects; for instance, thermal plants have a construction period of approximately 36 months, against deadlines of 50-60 months for hydropower. On the other hand, their lifespan is 15-20 years while hydro- power plants often reach a hundred years." In the view of the former Minister of Mines and Energy: "The positive aspect of the 1980s is that they kicked off the beginning of the growing recognition that economic devel- opment is only real and meaningful if it is pursued with an environmentally sustainable and socially responsible approach. But organizations and pressure groups, which at the time mobilized in defense of the environment, did not succeed in controlling the emissions of harmful gases such as carbon dioxide, which kept increasing. Unfortunately, these organizations mistakenly invested also against "large dams," pressing multilateral lending institutions including the World Bank-that in response drastically diminished their support for hydropower projects, reaching full on poor countries of Asia, Africa and Latin America. Back then, it was not possible to predict that the 20th century would be ending with 1 billion, 600 million people without the benefits of electricity." Given these realities, Itaipu can be a point of refer- ence for and study by other hydroelectric ventures. By assigning strategic relevance to sustainability in 2003, Itaipu started changing its definitions of mission and strategic objectives. From there, it took the lead in the field of hydropower in order to search for sustainable electricity. This strategic direction presented opera- tional adjustments in several contexts. We explore these changes and their consequences next. Itaipu and Strategic Redefinition: Mission and Strategic Objectives Because of regulative and normative pressures, Itaipu leaders chose to undertake a full range of activities for the purpose of producing energy on a fully sustainable basis. The ultimate goal is to establish a viable industry from the various perspectives that different Itaipu stakeholders- governments, businesses, funding agencies, regulatory agencies, and community-hold and value. Thus, in 211 agreement with the Ministry of Mines and Energy, Itaipu is committed to the following activities and expectations: "The Ten-Year Plan for Energy Expansion for the period 2007-2016, approved by the Ministry of Mines and Energy in February 2008, with the program of works of short and medium term, there is a signal of an expansion of 50,000 MW, which is added to the average of 5,000 MW per year in power generation. Studies of energy scenarios for 2030 indicate the maintenance of the energy matrix with a share of renewable sources around 47 percent and the energy matrix with 83 percent." Among the full set of records and documents in Itaipu's files, some are prominent because of their stra- tegic nature and value. We highlight some of these items in Table 1. To a certain degree, the specifications of the items in Table 1 reflect institutional pressures affecting Itaipu's efforts to formalize its direction and appropriate actions to take in light of those pressures. The appoint- ment in 2003 of a new Brazilian General-Director (who earned a degree in agronomy) also influenced the forma- tion of items shown in Table 1. The alterations in perspective that are suggested by the changes to Itaipu's vision and mission statements regarding operations of the power plant highlight the fact that an organizational approach that had been focused on hydroelectric use was shifted to a focus on develop- ing methods to generate electricity with sustainability in mind. The commitment to sustainability is emphasized by the changes to the vision statement that were formal- ized in 2012. To facilitate sustainability, decisions were made to operate the plant at least partly by using other forms of energy, such as biogas, for electricity-generating purposes. Table 1 Definitions of Mission and Vision of Italpu Definition of the Mission until 2003 Hydroelectric use of water resources of the Paraná River, belong- Ing to both countries as a consortium, from and including the Salto Grande de Sete Quedas or Salto de Gualra, to the stream mouth of the Iguassu River. Definition of the Mission In 2003 Generate quality electric power, within the context of social and environmental responsibility, promoting economic development, tourism and technological development, In Brazil and Paraguay. Addition to the Vision Statement in 2012 To be consolidated as a generator of clean, renewable energy by 2020, with the best operating performance and best sustainabil- ity practices in the world, promoting sustainable development and regional Integration.
212 In the "Strategic Planning 2012-2016" document that describes Itaipu's commitments and operations, the basic principles associated with sustainability as well as addi- tional key objectives are presented: ■ Acknowledgment of the importance of water, raw material for hydropower generation, as a renewable natural resource, scarce, non-transferable, under public control, whose preservation should be a uni- versal concern. The development of the societies of both countries should be sustainable, so that the use of natural resources by the present generation will not compro- mise this same resource for future generations. The understanding that universal access to energy with quality and compatible prices is one of the fac- tors most relevant to the development of both coun- tries and for the promotion of social welfare. Supporting efforts to implement Itaipu's Strategic Plan and objectives is a set of Policies and Guidelines that were established in the organization for 2012-2016. These Policies and Guidelines are presented in Table 2. The policies and guidelines of Itaipu communicate essential changes in the modus operandi of the organiza- tion. Until 2003, there was a predominance of essentially technical elements to generate electricity, with some degree of concern about environmental dimensions, in order to increase the life of the plant and socioeconomic development initiatives limited to the convergence with the business. Relations between Brazil and Paraguay are based on the contractual aspects of binationality. In 2003, Itaipu became concerned with a number of issues including those of increasing the efficiency of the plant's operations while remaining committed to sus- tainability objectives. Participatory management models and techniques were identified at this time as a means to effectively address these two core issues. The managers of the binationality-focused plant also wanted to contribute to efforts aimed at integration of South America through how the plant designed and executed its operations. For the 2012 to 2016 period, the increasing expecta- tions of Itaipu with respect to corporate sustainability requirements were thought to be products of different sources of normative and cultural influences, at least to some degree. Concerns about various issues such as humanity, diversity, and harmony between business operations and the environment in which they are situ- ated are examples of normative and cultural influences that yielded a focus on what some people call the bio- civilization. In this respect, the binationality associated with Itaipu was considered to be a potential model of Part 4: Cases Table 2 Policies and Guidelines Policies and Guidelines until 2003 1. Binationality (Brazil and Paraguay) 2. Institutional image: relationship between the two countries 3. Goals of the company defined at the strategic level 4. Financial economic optimization 5. Decision criteria at all levels when conducting cost-benefit analyses 6. Generation and supply of electric power with full accessibility and reduction of operating costs 7. Preservation of environmental conditions to control and treat the factors that may affect the life and performance of the plant as well as its ecosystem 8. The socioeconomic development of the region when Initiatives converge with the company's Interests 9. The administrative structure and workforce of the company always seeking operational and productivity efficiency 10. An effective legal department that is available to address potential legal liabilities Policies and Guidelines Established in 2003 1. Binational Integration: an Instrument of Integration of South America 2. Ethical values 3. Business efficiency as reflected in the tariffs 4. Democratic management: responsible, participatory and transparent 5. Development of human resources 6. Social commitment: active cooperation promoting its development 7. Environmental commitment: preservation, conservation and recovery leaving a better environment to future generations Policies and Guidelines Defined for 2012-2016 1. Respect for the human being: recognize and respect the dignity of human diversity 2. Binational Integration: harmonious coexistence, the seeking of joint solutions, constituting paradigm for the Latin American Integration 3. Proactivity and Innovation 4. Responsibility under the aegis of the agreement between Brazil and Uruguay 5. Recognition of the results of the efforts and work of the people 6. Corporate sustainability: Initiatives that are socially just, environmentally and economically viable and culturally accepted, ensuring continuity 7. Regional sustainable development: socioeconomic development, social Inclusion and improvement of environmental conditions. 8. Ethical values
primarily by adhering to and using the guidelines and following the principles shown in Table 2. Latin American integration for others to emulate. The Corporate Strategic Map (see Figure 1) reflects some of the normative and cultural influences Itaipu was experi- encing. The focus of these influences is divided into three dimensions: stakeholders, internal processes, and learn- ing and growth. In turn, these three dimensions yield a total of 16 strategic objectives that are part of Itaipu's efforts to reach its mission and vision (see Table 1) In 2013, the Itaipu workforce that had been formed to support Itaipu's efforts to reach its mission and vision totaled 1,424 employees in Brazil and 2,036 in Paraguay. Outcomes resulting from Itaipu's operations (as sup- ported by its workforce) in light of the normative and cultural influences it was encountering are impressive. Figure 1 Corporate Strategic Map 2012-2016 VISION: By 2020 Itaipu Binacional will consolidate as the best performance generator of clean and renewable power, with the best operating performance and the best practices of sustainability in the world, boosting the sustainable development and regional integration. OE2 - Ensure economic and OE1 - Ensure security of energy production with the best quality indexes financial balance OE3-To be recognized as a global leader in corporate sustainability OE4-Contribute effectively to sustainable development in the areas of influence Operating Excellence Socioeconomic Development OE7-Promote socioeconomic OE11-Support OE8-Increase OE5-Improve the efficiency of the processes of energy production, keeping updated the technological infrastructure the participation development in projects in the the area of influence of Itaipu in the socioeconomic area of influence areas of science, technology and innovation with particular concern of sustainability OE6- Provide efficient business processes and suitable technology OE9-Promote and support energy research and technology development STAKEHOLDERS INTERNAL PROCESSES LEARNING AND DEVELOPMENT OE13-Enable people to develop their knowledge and skills essential for the implementation of corporate strategy OE14 -Promote an organizational culture focused on efficiency of processes and results OE10-Boost the tourism development of the region OE15-Keep the human capital with a high level of motivation, commitment and performance Environmental Responsibility OE12-Consolidate the process of environmental management by river basin and integrate the community OE16-Provide information and systems essential to the implementation of the strategy
214 In that year, for example, the Itaipu Dam generated 92.2 million MWh of electricity, an amount that supplied 17 percent of the Brazilian market for electricity and 73 percent of the Paraguayan demand. In that year, the payment of royalties for the generation of electricity was approximately $230 million per year for each country. In Brazil, the amount allocated to neighboring municipali- ties near the reservoir represented an average increase of 52 percent in revenues, benefiting about 600,000 people. Itaipu and Biocivilization: From Planning to Accomplishment Next, we discuss issues that illustrate or describe approaches Itaipu is using for the purpose of achieving its mission and vision. As these discussions demonstrate, the actions being taken are grounded in the guidelines and principles featured in Table 2. Integrated Management Tourism On the Brazilian side of its operations, Itaipu initially implemented a program of fees for visitors to tour the dam. This program also featured different types of tours and the presentation of entertainment (such as a show of lights and sounds) on certain nights to encourage visitors to tour the facilities. In this regard, Itaipu offered new tourism products such as the Panoramic Tours with an external view of the dam and what was called a "Special Tour, which was a tour of the interior of the plant. The Special Tour was quite impressive, and in 2010, it was selected as one of the best tourism opportunities made available by the Brazilian Ministry of Tourism. Subsequently, Itaipu effectively implemented the tourism trade integrating all agencies and companies of the sector. Itaipu led the Integrated Management of Tourism and designed a new image of the hotel chain Iguassu Destiny in Brazil and abroad, and attracted pri- vate investment for its improvement and expansion in the region. As a result of these actions, the number of visitors to the Iguassu National Park, Itaipu, and the International Airport of Foz do Iguassu increased dramatically. The image of these areas became far more positive, leaving behind former images of too much violence, the smug- gling and general trafficking of drugs, and even terror- ism. Obviously, these benefits were seen as contributions to society as a whole and were viewed as being responsive to normative influences on Itaipu's operations. There is additional evidence of the success of these efforts. In 2009, for example, Foz do Iguassu was chosen as the best tourist destination in Brazil among non-capital cities. In Report Brazil 2009, the Ministry of Tourism's survey on the competitiveness of 65 destinations that Part 4: Cases encourage regional tourism development, Foz do Iguassu was awarded the highest score in five dimensions: access, services and tourist facilities, marketing and promotion of the destination, entrepreneurship, and environmental aspects. In order to ensure sustainability for the actions of Iguassu Destiny, the Iguassu Fund was created. This fund is maintained by voluntary contributions resulting from tour ticket sales and room tax fees charged by the hotels. This fund also promotes tourism regardless of leadership changes that may occur in the management of Itaipu, City of Foz do Iguassu, and state and federal governments. Another example of the influence of Itaipu in tour- ism occurred in 2011 when the Iguassu Falls was selected as one of the Seven Wonders of Nature. Good Water Program Jorge Samek, early in his role as Director-General of the Brazilian Itaipu, observed in 2003 that water was intended to produce electricity as well as generate all kinds of energy required to those whose lives depended on water, especially citizens in the two countries involved with the Itaipu Dam project. In his words: "That's exactly what we need: a new model of civilization tested on a miniature, which is feasible within the changing condi- tions of the Earth in the global warming process and growing scarcity of their resources, a new way for sustainability" Accordingly, relying on what was at the time a new per- spective, as reflected by Itaipu's vision and mission, the Good Water Program was created. This project was considered one of the greatest social and environmen- tal initiatives in place in the southern region of Brazil. The project is comprised of a set of initiatives covering 29 municipalities of Paraná in a permanent participa- tion movement, involving approximately 2000 part- ners among government agencies, NGOs, educational institutions, cooperatives, community associations, and local businesses. The project comprises 20 programs and 65 actions related to recovery from environmental liabilities and the promotion of sustainable production and consumption. The areas/territories associated with the Good Water Program were defined not by arbitrary boundaries of the municipalities but by using the natural limits of the hidrobacias river basins. Thus, communities are created along with committees in each watershed. The commu- nities that are created are products of the guidance pro- vided by the requirements of environmental education. Overall, the interest was for many thousands of people to become more educated about the environment and ongoing efforts to effectively sustain it.
The Good Water Program seeks to reach objectives in multiple areas. For example, there is an interest to engage in activities for the purpose of recovery of micro- river basins. This is achieved primarily by planting and protecting the riparian areas and monitoring water quality. Other actions taken include those of promot- ing agro-ecological practices and disseminating healthy food items, taking actions to improve the quality of areas that have been degraded by agricultural activities, and evaluating the sustainability of indigenous communities. Collecting recyclable materials, trying to protect com- munities' biodiversity conditions or realities, and engag- ing in environmental education programs in schools are still other actions being taken under the guise of the Good Water Program. The Agroenergy Condominium of Ajuricaba inte- grates 32 pig farmers from Marechal Cândido Rondon and is the first condominium in the country to produce electricity with biogas from the fermentation of manure, ensuring an income of R$270,000 per year with the ther- mal power generation, electric vehicles, and biofertiliz- ers. The green belt, also called the Biodiversity Corridor (70 meters wide) connects the Iguassu National Park of the Big Island, the border between the Paraná and Mato Grosso do Sul, allowing the genetic flow of the regional flora and fauna. Once it is fully formed, this type of belt might be extended to other two state parks in Rio Grande do Sul and São Paulo. According to Zilda Arns (2008), the projects developed by Itaipu, in conjunction with the Pastoral da Crianca, other organizations and the local communities, encour- age school education, volunteering, income generation, gender equity, as well as contributing to the prevention of sexual exploitation and child labor. Thus, a host of positive outcomes results from the projects Itaipu is undertaking. Farmers migrated from grain production (soybeans) to fruit production, vegetables and organic vegetables in areas equivalent to a little more than two football fields, supplying markets in the region and school lunches of municipal education. "Organic agriculture has transformed our lives. I was able to send two daughters to college," said one of the farmers. Over 700 aquaculture cages are scattered around the Itaipu Lake with a potential of production of 6000 tons of fish a year. The natural barrier of the riparian forest that borders thousands of miles from the Itaipu Lake and its tributaries from the Brazilian side was reinforced by 24 million trees that were planted in the last ten years. Also, preventing livestock farming and silting up of riv- ers resulted in the recovery of the local flora which in turn brought back native species of fauna. The implementation of the Federal University of Latin American Integration-UNILA-opens up a new perspective for tourism and the service sector. This uni- versity will help Foz do Iguassu to be consolidated as a tourist city, attracting students and families of all Latin American countries, not only because of the courses that will be offered, but also university events. The campus design was created by the architect Oscar Niemeyer. Some actions of the program, as long as they are sus- tainable, also prolong the life of the plant reservoir as well as the ability to store water which has been widely discussed in terms of energy in the country. Consumer groups have adopted a perspective of welfare rather than consumption. In 2005, the Good Water Program received the Earth Charter (Earth Charter +5) award as presented in Amsterdam. Other awards that have been received. include the Brazilian Environmental Benchmarking (2007 and 2011), and the Americas Award, the UNITAR in 2011. Such awards show that the Good Water Program represents development and participatory management in environmental projects that harmonize economic development with energy production and environmen- tal preservation. Final Considerations Despite being one of the largest power plants in the world and being located in countries with the highest potential for renewable energy generation, those operating the Itaipu Dam face constant challenges. In part, these chal- lenges find leaders seeking to satisfy what are often com- peting interests as expressed by different stakeholders. These realities are captured by the following statement as offered by a member of the International Hydropower Association (IHA) board: "There is a growing global awareness that hydropower projects should provide the first portion of the water and energy benefits to local communities, especially those directly affected by the project. Hydropower produces a sixth of the world's electricity, and with the right invest- ments, their contribution could be tripled."* Also at least partly describing the challenges those involved with leading the Itaipu Dam project are com- ments from a physicist researcher located in Brazil: At the moment, scientists and technicians, opinion leaders and decision makers, can be divided into two incompat- ible groups. One group includes those who do not feel any responsibility towards future generations, but who realize the importance of energy to the comfort and survival of
216 homo sapiens. And another group who values sustainabil- ity as if humanity could do without energy." The challenges to be overcome by the power genera- tion industry in Brazil are proportionally equivalent to the abundance of resources. On one hand, the country has abundant natural resources; on the other hand, tax NOTES 1. HA-International Hydropower Association; NHA USA-USA National Hydropower Association; INHA-Indian National Hydropower Association; HA Nepal-Nepal Hydropower Association; CHA-Canadian Hydropower Association. Itaipu. The great energy: multiple views on hydroelectricity/Social Communication Itaipu; Making Competence 2 3. 4 5. 6. 7. 8. Part 4: Cases policies and the barriers they create increase the diffi- culty of efforts to integrate the nation's power generation capabilities for the purpose of satisfying citizens' needs. For these reasons as well as others mentioned herein, Itaipu is an interesting case of an organization that seeks to serve customers' needs within the context of the envi- ronmental conditions affecting its operations." 9. Ibid. 10. In preparing several parts of this case, materials available from Itaipu Binacionals website (http://www.itaipu.gov.br/) was carefully studied. Insights from studying these materials subsequently informed the development of different parts of the case. Communication and Marketing, Graphic Design and Art Direction TAB Editorial Marketing. - Foz do Iguaçu: 2009. Ibid. Ibid. Ibid. Ibid. Ibid. Ibid.