the environmental license for the two judicial actions in 2010 against government. It is important to stress in a letter to Brazilian President Luiz IBAMA for having granted the provi- that the auction took place while the Inacio Lula da Silva in 2010.5 sional environmental license without third restraining order was in full ef- responding to the omissions in Eletro- fect. Lack of Public Consultation bras’ environmental assessment. The SUPPORTING INDIGENOUS PEOPLES The government claims that proper judicial actions argue that the missing Each injunction was overturned in PROTECTING THE AMAZON RAINFOREST public hearings were held to consult water quality data violates National a matter of hours by the President indigenous people and river dwell- Environmental Council (CONAMA) of the Appellate Court for “Region ers about the impacts of Belo Monte. Resolution 357, which establishes the 1” - which covers the entire Amazon Indeed, Minister of the Environment standards for water quality, and article basin - succumbing to heavy political Carlos Minc claimed that the public 176 of the Brazilian Federal Constitu- pressure from the Lula administra- hearings were “pedagogic.” However, tion, which prohibits the development tion. In spite of legal and constitutional ’s Belo Monte : this could not be further from the of hydrological energy potential on safeguards that place the Belo Monte truth. Only four public hearings were dam in dubious legal standing, the A Major Threat to the Amazon and its People held in the cities of Altamira and Brazilian government has consistently Vitória do Xingu, destinations that used a heavy hand to push this project he Brazilian government is mov- “Our ancestors are inside this land, migrants to the region. However, at through to the detriment of the Xingu take days for indigenous people travel- ing ahead “at any cost” with plans our blood is inside this land, and the height of construction, only 40,000 ing by boat to reach. Even so, at the River and its peoples. If built, the dam T to build the third-largest dam in the we have to pass on this land with jobs – only 2,000 of them long-term public hearings security forces imped- forbears a grim future for the rivers of world and one of the Amazon’s most – will have been created. The remain- ed the entrance of civil society repre- the Amazon basin. the story of our ancestors to our controversial development projects children We don’t want to fight, but ing labor pool will be driven to resort sentatives, and the few public queries – the Belo Monte dam on the Xingu to illegal logging and cattle ranching, we are ready to fight for our land if that were asked were dismissed, References River in the state of Pará. The Belo the two main causes of deforestation 1 Periódicos UFPA, As hidrelétricas de Belo ridiculed, and answered evasively by Monte dam complex dates back to we are threatened. We want to live in the Amazon. In addition, new representatives. Monte e Altamira (Babaquara) como fontes de on our land in peace with all that gases de efeito estufa. [http://www.periodicos. Brazil’s military dictatorship and the migrants could fuel social tensions ufpa.br/index.php/ncn/article/viewArticle/31]. government has attempted to build it we have there.” as they look for work, pushing into Leaders from the Basin through a series of various national -Zé Carlos Arara, Indigenous indigenous territories and protected 2 have made it clear that their right to WWF-Brazil and Greenpeace, Brazil’s Sustain- investment programs including Brasil Leader from the Xingu areas to carve out a livelihood. Mean- able Power Sector Vision 2020. consultation on the Belo Monte project Photo Credit: Atossa Soltani / AMAZON WATCH em Ação and the Program to Acceler- while, the needs of those who do find James Cameron visits the Xingu has not been honored. José Carlos Ar- 3 British Broadcasting Corporation, Brazil ate Growth. Original plans to dam Canal. Belo Monte’s two jobs will add pressure to an already ara of the Arara people on the Xingu’s indigenous lands without a previous grants environmental licence for Belo Monte the Xingu have been greenwashed and canals will flood a total of 668 km2 weak infrastructure and social services Big Bend, for example, has denounced fulfillment of regulatory mechanisms.6 dam (accessed February 2, 2010). through multiple public relations pro- of which 400 km2 is standing forest. in the largest cities. the government’s claims that he and 4 grams over the course of two decades The flooding will also force more than other leaders took part in an official Huntingtonnews.net, “Shame on Brazil: The Belo Monte auction took place on Stop the Amazon Mega-Dam Project Belo in the face of intense national and 20,000 people from their homes in the For the Xingu’s poor farmers, tempo- meeting with the government on Belo April 20, 2010 amidst street protests Monte” [http://www.huntingtonnews.net/ international protest. municipalities of Altamira and Vitoria rary employment created by the dam Monte, as mandated by the licensing taking place in major cities across columns/100311-sommer-columnsbrazil.html]. do Xingu. is not a viable replacement for lost process. He even has video footage of Brazil. Leading up to the auction 5 Impacts on Environment and agricultural lands and the river’s fish government officials stating that their International Rivers, Appeal to President Luiz date three injunctions (restraining Inácio Lula da Silva. [http://www.international- People Hydroelectric energy is touted as both supply. Considered an “obstacle” to 2009 meeting with local leadership orders) were issued by a federal judge rivers.org/files/Appeal_letter_English.pdf] In order to feed the powerhouse of the a solution to Brazil’s periodic blackouts business interests, indigenous peoples was an unofficial consultation, clearly of Altamira. Favoring the civil action (accessed April 9, 2010). Belo Monte dam complex, up to 80% and as a “clean development” approach are particularly vulnerable. Mega- promising that an official audience to global climate change. How- lawsuits filed by the Brazilian Federal 6 of the Xingu River will be diverted projects typically confront indigenous would take place. Agência Brasil, MPF afirma que pro- ever, Philip Fearnside of the National Public Prosecutors Office and human jeto de Belo Monte viola Constituição. from its original course, causing a communities with disease, loss of food rights and environmentalist NGOs, [http://noticias.ambientebrasil.com.br/ permanent drought on the river’s “Big Amazon Research Institute (INPA) and clean water sources, cultural dis- Legal Challenges and Federal the injunctions were struck down by a clipping/2010/04/09/53259-mpf-afirma-que- Bend,” and directly affecting the Pa- has calculated that the forests flooded integration and human rights abuses Injunctions regional appellate court judge, under projeto-de-belo-monte-viola-constituicao.html] quiçamba and Arara territories of the by Belo Monte’s reservoirs will gener- by illegal loggers, migrant workers (accessed April 10, 2010). Brazil’s Federal Attorney General filed heavy political pressure from the Lula Juruna and Arara indigenous peoples. ate enormous qualities of methane, a and land speculators. The indirect and To make this possible, two huge canals greenhouse gas that is 25 times more long term impacts of Belo Monte are of 1 500 meters wide by 75 km long will be potent than CO2. even greater concern as other unsus- Amazon Watch works to protect the rainforest and advance the rights of indigenous peoples in the Amazon Basin excavated, unearthing more land than tainable industries such as aluminum For more information contact Chrisitan Poirier at [email protected] or 415.487.9600 x303 was removed to build the Panama Belo Monte will also attract 100,000 and metal refineries, soy plantations,

221 Pine Street, 4th Floor 1350 Connecticut Ave. NW #1100 SAN FRANCISCO, CA 94104 WASHINGTON, DC 20036 Tel: 415.487.9600 Fax: 415.487.9601 [email protected] Tel: 202.785.3962 www.amazonwatch.org Amazon Watch Issue Brief BELO MONTE

The Belo Monte Hydroelectric Project

PROJECT DETAILS logging, and mining 345()6($74 in mining expansion in energy efficiency and renewables cial risks associated with the project. causing serious divisions within the ! 2 dams — one to house the turbines, expand into the area. '"()*&2617 for the Amazon re- such as wind and solar power, conserv- Nonetheless, using subsidized credit agency. Despite this, in February 2010 and another with floodgates to 0121 gion through the year ing the Amazon ecosystem and drasti- from BNDES and through back-door the head of IBAMA approved the EIA, restore the remaining flow to the lower Xingu EnergyRiver Inefficiency /'%*?"#); 3 ! 516 sq km would be flooded, but in Monte and other expected to cost upwards of USD $17 expected to participate in up to 50% of period” of operation. This “wait and be one of the most +,"#& all 1,522 sq km would be affected <63,."*,& ');)*(1"* <*3"2"9",6 hydroelectric dams the dam’s construction as contractors. see” attitude is no way to manage the energy inefficient -"D); billion, including $2.5 billion for the *);)*(1"* planned for the region transmission lines. The project has Meanwhile, European companies Al- environmental impacts of the world’s ! 2 massive canalsdams —in each the history500 of =,#,6; meters wide,Brazil. and a It series will produceof dykes would power the been developed by the state-owned en- stom, Andritz, and -Siemens and third-largest dam. to transfer theonly water 10% from of its the 11,233 Xingu expansion of export- ergy company to the artificialmegawatt canals (MW) in- oriented mining at Eletronorte, Despite laws the Vale corporation’s and would be and policies ! 20,000–40,000stalled to capacitybe displaced during the 3-5 month-long !"#$%&'"()* +,"#&-,. Carajás iron mine and funded largely promising ! Cost: over US$16dry season, billion an aver- Salobo copper mine, by the Brazil- environmental /"$&/)#0&12&34)& Alcoa’s Juriti baux- ian National protection and STATUS age of only 4,462 MW !"#$%&52617& ite mine, and An- community The Brazilian environmentalthroughout theagency year, $*),368&*)0%9)0: Development IBAMA grantedor the 39% project of its a nominalprelimi- glo American’s Jacaré Bank (BNDES), participation in Image Credit: International Rivers nary environmentalcapacity. license To in guarantee February nickel mine, among which has pub- development 2010. The government hopes to auc- others. Meanwhile, licly committed and land man- a year-round flow of maticfrom thevariations Brazilian in national the Xingu development River’s bank, BNDES. It tion the project to private investors in April 2010 and to Brazilian citizens would continue to to financing agement deci- water, the government would need flowwould between be the bank’sthe rainy largest season loan andever, dry surpassing a previ- start construction in late 2010. Meanwhile, a slate of legal pay among the highest energy tariffs in up to 80% of sions, Brazil’s challenges fromto civil construct society agroups series and of large Brazilian dams public season,ous record the governmentset for its loans knows to dam that Brazil’s Madeira River. the developing world in exchange for the project official EIA for attorneys may delayon the the Xingu project. and its tributaries that buildingBanco do Belo Brasil Monte is reportedly is economically organizing financing from Brazilian private banks for the remainder of theelectricity cost, but from perhaps the most inef- cost. Financ- the Belo Monte will gravely impact forests and forest unviable unless more dams are built FINANCING whether private banks will be willing to investficient in such dam a in the country’s history. ing for Belo project has peoples. upstream. Earlier plans for Belo Monte Up to 80% of the project could be financed through funds huge and risky project remains to be seen. Monte would also received called for four additional upstream Sustainable Alternatives represent the harsh criticism The original plans for damming the dams: Altamira, Iriri, Pombal, and São WWF-Brazil released a report in 2007 largest loan in from national Xingu included six dams: Kararão, Felix. and interna- the Big Bend wouldBabaquara, receive less Jarina, water thanIpixuna, at any Iriri, time and in of their diet. The Kayapó are bitterly opposed tostating the project that Brazil could cut its expect- BNDES’ his- ed demand for electricity by 40% by tory, for which tional experts, its history, fish stocksKokraimoro. would be decimated, However, with when some the spe- in- andThe have possible vowed future to wage upstream war if the dams government proceeds. 2020 by investing in energy efficiency. the bank has all of whom cies found only in thedigenous Big Bend people likely of to the become Xingu extinct. rejected would impact Kayapó indigenous ter- Photo Credit: Antoine Bonsorte / AMAZON WATCH The power saved would be equivalent offered unprec- note that the The drying of the Bigthe Benddams would and defended make it impossible the river infor ATritories, WHAT flood COST the TO landsRIVE RofINE peoples AND URB suchAN PEOPLE? indigenous communities to reach the city of Altamira to sell Officially 19,000 people would be forcibly displacedto 14 Belofor Monte hydroelectric plants edented loan conditions, including Argentine company Impsa are expect- EIA barely covers even the minimum 1989, the government changed their as the Araweté, Assuriní and Arara, their produce or buy staples. The lowering of the water table Belo Monte, most in the city of Altamira, but andthe inde- would result in national electricity 30-year interest periods at 4%, signifi- ed to supply turbines for the project. amount of information required by approach: the name Kararão (a war cry and cause extensive damage to forests would destroy the agricultural production of the region, pendent review of the project found the real numbersavings of of up to R$33 billion (US$19 cantly below the cost of capital. The Brazilian legislation. in Kayapó) became “Belo Monte”, the and fisheries across the region. affecting indigenous and non-indigenous farmers, as well as directly affected people could be twice the officialbillion). estimate.2 government is also siphoning Brazilian Grave Omissions in the name Babaquara became “Altamira”, Contrary to what would happen in the Big Bend, Altamira’s water quality. In all probability, the rainforests in this region public pension funds and the country’s In protest, two senior technicians at and so forth. water table would become saturated, leading to flooding Environmental Impact Assessment would not survive. The formation of small, stagnant pools of What the Electricity is For Retrofitting existing hydroelectric workers’ insurance funds in order to The IBAMA technical team assigned IBAMA, Leozildo Tabajara da Silva water among the rocks of the Big Bend would be an ideal throughoutThe government the city claimsduring thethat rainy Belo season. More than infrastructure would also add thou- bankroll a full 25% of the project’s to the project declared that “there are Benjamin and Sebastião Custódio environment for proliferationAt the Second of malaria Historical and other Encounter water- in 100,000Monte’s migrants cheap energy are expected will power to arrive the in search of work. Riverine families who have lived off of fishingsands and small- of megawatts to the energy grid construction consortium, called Norte insufficient elements to attest to the Pires, resigned their posts in 2009 after borne diseases. Defense of the Xingu in May 2008, the houses of Brazilian families. In real- scale agriculture on the Xingu for decades wouldwithout be forced needing to dam another river. Energia. environmental viability of the project” citing high-level political pressure to government announced it would only ity, only 70% of Belo Monte’s energy Communities upstream,license including and auction the Kayapó one damIndians, complex would to relocate to Altamira, where they would competeA first with step would be to reduce the due to the omission of data in the En- approve the project despite the obvi- will be sold for public consumption. 4 suffer the loss of migratory fish species, which are a crucial part migrants for very few jobs, most of them low-paying.startling amount of energy lost during The 18-member Norte Energia consor- vironmental Impact Assessment (EIA). ous omissions in the EIA. Shortly – “Belo Monte” – which in reality is Meanwhile, the remaining 30% has transmission, replace energy-ineffi- tium is currently marked by a state- Data was missing regarding water after the government’s decision to three dams: the main dam at Ilha do been purchased by state electric utility cient household products, and update controlled participation in the consor- quality, socioeconomic indicators, and move forward with Belo Monte, 140 Pimental, a complementary reinforce- Eletrobras to resell to inefficient and old and failing generators. Rather than tium totaling 77.5 percent, dwarfing fish populations, and flimsy plans to organizations and movements from ment dam called Bela Vista, and the energy-intensive industrial mining and invest in large, inefficient dams, Brazil the role of private sector investors and mitigate the direct impacts on river- Brazil and across the globe decried the main turbine house at Belo Monte do other operations. The government has has the potential to be a global leader reflecting concerns about the finan- ine families were devised last minute, decision-making process in granting Pontal. However, because of the dra- planned a USD $40 billion investment