Dam Dilemma

The sheer capacity and scope of the project are staggering: with a capacity of 11,000 megawatts, Belo Monte will be the world's third largest hydroelectric dam and the product of an investment as expensive as 12 billion Euros. A decision favorable to the construction of the dam was approved this week by Brazil's environmental ministry, Ibama.

With Ibama's approval in place, the Brazilian government has a green light to open construction contracts for bidding. To actually start construction, however, it needs one more approval from Ibama, which will be conditional upon the chosen contractor demonstrating it has adhered to 40 stipulations designed to protect water quality, fauna and the local population and make social provisions such as sewage control and reforestation.

Pedro Bignelli, head of Ibama's licensing department, said he believes the approval takes all necessary factors into account.

"What is necessary and what must be done is spelled out clearly in the license. Now the contractors will have to explain how they plan to implement this. Therefore, the removal of people from the regions which will be flooded will be negotiated between those inhabitants and the contractor: whether they will be compensated or relocated, how new housing will be constructed, where it will be constructed, etc."

The dam will be constructed on the Xingu River, which traverses the Brasilian states of Mato Grosso and Para and flows into the Amazon River. Despite Ibama's approval, the 20-year-old discussion about the Belo Monte dam is far from over.

Economic risks

The District Attorney of Para's office has been carrying out legal action against the project since 2001, and has engaged in eight lawsuits. Its main points of criticism have been a lack of respect for indigenous people, the effects the project will have on the environment and its financial ramifications.

One particular concern the District Attorney's office has about the planned hydroelectric dam is its profitability.

According to District Attorney Ubiratan Cazzeta, initial estimates of the projects' costs were about nine billion Brazilian Reals. The Brazilian government has since estimated the costs to be closer to 20 billion Reals, and some experts believe they could reach 30 billion.

The Belo Monte hydroelectric dam will be a diverted flow power station, which means the construction of large retainers is not necessary. Although its maximum potential is 11,000 megawatt, official documents note an average performance of 4,000 megawatt. A common fear the Brazilian government has had to pacify is the suspicion further retaining dams may be built to ensure Belo Monte produces near its maximum capacity more consistently.

"If one invests 30-trillion Euros in a project, and the resulting dam is not economically viable because of the changing power of river currents, then that because a future justification to build more dams in order to salvage the past investment," Cazzeta said.

Samuel Barreto, who is in charge of the World Wildlife Federation's Water for Life program in Brazil, sees another problem.

"The effects on global warming weren't included in this analysis," he said. "Several of our studies point out the construction of such a diverted flow power station can lead to future problems if it isn't possible to produce enough energy because of the decreasing strength of river currents. The fluctuating levels of the Xingu river basin need to be taken into account."

Indigenous cultures threatened

Twelve indigenous tribes live within the area which will be affected by the construction of Belo Monte, according to Ibama. Until last year the approval process for the project was carried out without their input. They were only paid attention to after the district attorney's office became involved.

How to balance the construction of Belo Monte with the interests of indigenous people is a point of divergence amongst Brazilian government entities, according to Ubiratan Cazzeta. One example of this is the national government does not classify the area which will be affected by construction as part of an indigenous reservation, while the district attorney's office says there is no doubt of its reservation status.

"We believe the affected area is absolutely a reservation for indigenous people. This perspective has concrete consequences because indigenous people have rights to compensation which have yet to be discussed at all."

While the Brazilian government initially recognized the affected land as part of an indigenous reservation, it recanted its position, leading to unrest and a legal battle.

Impacts on local populations

The construction of Belo Monte is likely to create a substantial flow of migrants. As many as 85,000 people could resettle in the area of the dam, according to one estimate. Cazzetta believes this will lead to developments which are anything but sustainable. Companies such as Alcoa and Vale are already coveting the possibility of using electricity generated by Belo Monte to construct Bauxite mining facilities.

"This model for the region isn't being clearly discussed," Cazzeta said. "The electricity-intensive activities of factories will lead to a stream of migration which the Brazilian government isn't capable of managing, as has been demonstrated many times."

Energy challenge for Brazil

Brazil's tradition of building hydroelectric dams is the reason its energy infrastructure is considered to be "clean." However, the country's government finds itself in a double-pronged position. Christina Stolte, of the Institute of Latin American Studies at the German Institute of Global and Area Studies (Giga) in Hamburg, believes Brazil faces a substantial challenge.

"It's necessary to make a distinction between national and international energy policy," she said. "Nationally, the main focus of the Brazilian government is to provide as much energy as possible for its growing economy during the next few years. Internationally, Brazil is trying to set itself up as a major green power. While other rising nations like China or India are placing their trust in conventional energy sources -- coal and oil -- Brazil has let it be known that nearly 50 percent of its energy consumption is covered by renewable sources. Those sources include hydroelectric power, which Brazil presents as particularly environmentally friendly."

Energy mix

The World Wildlife Federation in Brazil is not opposed to the construction of hydroelectric dams in the country. According to Samuel Barreto, however, the organization does level criticism about the decision of when and where the Belo Monte dam should be built.

"It is necessary to have a more comprehensive view of energy sources," he said. "There are alternatives such as wind energy, which can reduce the need for hydroelectric power, although it must be acknowledged that Brazil has a great deal of potential for hydroelectric power."

The WWF in Brazil contends that approval of the license should have taken place at a later time because the Xingu river basin needs to be analyzed more completely, as do the environmental implications of the project and its effects on biodiversity and society.

However, Pedro Bignelli, of Ibama, believes the project was examined thoroughly and in due time.

"The technical analysis took a finite amount of time," he said. "For the businesses involved it took too long, and for some NGOs it went too quickly. But the analysis was done very carefully and made public once it was possible to do so."

Author: Nadia Pontes (gps)
Editor: Mark Mattox