The Panambí Dam would be built in the Misiones province of Argentina, and the Alecrim municipality of Rio Grande do Sul in Brazil.

[1] The Panambí Dam would be about 9 kilometres (5.6 mi) upstream from Porto Vera Cruz in Brazil and Panambi in Argentina, and in Brazil its reservoir would cover parts of the municipalities of Alecrim, Doutor Maurício Cardoso, Novo Machado, Porto Mauá, Santo Cristo, Tucunduva, Tuparendi, Crissiumal, Derrubadas, Esperança do Sul and Tiradentes do Sul.

Eletrobras has guaranteed that the Yucumã Falls, the largest longitudinal waterfall in the world, and the Turvo State Park would be preserved, but there was fear that 10% would be flooded by the Panambi reservoir.

In a convention between Argentina and Brazil signed on 14 March 1972 three sites were selected: Roncador, or Panambi, with 2,700MW, Garabí with 1,800MW and San Pedro with 1,700MW.

[8] In February 2014 the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) approved the terms of reference for rescuing the fauna.

The main issue was that the reservoir would flood 60 hectares (150 acres) of the Turvo State Park, which holds regionally threatened flora and fauna, some at risk of extinction.

The rapporteur of the case noted a comment by the ecologist José Lutzenberger in the 1980s when entrepreneurs wanted to "rectify" curves on the Paraná River to allow passage of huge barges.