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Library Briefing Library of the European Parliament 12/06/2013 Belo Monte Dam project: an outline The Belo Monte Dam is a hydroelectric dam setting conditions for obtaining the installation under construction in the state of Pará, Brazil. licence. This was finally granted in 2011, Upon completion, with a generating capacity of despite many disputing that the conditions 11 233 Megawatts, it will be the third largest had been fulfilled. Local and federal courts hydroelectric power plant in the world. The successively adopted conflicting judgments project faces widespread criticism on economic, until, in August 2012, the Supreme Federal environmental and social reasons. Commercial Court authorised the construction of the dam. generation is expected to begin in 2015, with the Brazilian Minister for Mines and Energy, Edison whole plant scheduled to run at full capacity in Lobão recently stated that hydroelectric 2019. energy is "clean, renewable and cheap", and History also affirmed that Belo Monte has the lowest environmental impact in the world, Plans for the former Kararaô Dam began in proportionate to its capacity. The government 1975, with the military dictatorship aiming to claims that the project will ensure the rational build hydroelectric dams on the Xingu river, an use of natural resources, environmental affluent of the Amazon. A debt crisis, protection and sustainable development while privatisation of the electricity sector, the improving the living conditions of 60 million introduction of environmental licensing and people. strong opposition from civil society and local indigenous communities (grouped in 1989 in Financing the Encontro das Naçoes Indigenas do Xingu) Total investment in the plant amounts to were amongst the reasons why the plans – R$28.9 billion (approximately €10.3 billion). encompassing a set of five dams – were The project will be constructed under a public- revised. private partnership. In 1998, new plans by the state-owned power 20% of the costs will be covered by the company Eletrobrás reduced the area to be companies in the Norte Energia consortium, of flooded and the reservoir's size. The flow of the which 49.98% is held by Eletrobrás. Three Xingu river is now set to be diverted through major Brazilian pension funds, Petros, Previ two canals. The dam and reservoir will impact and Funcef, have a 20% share in the on the daily life of local indigenous consortium. The remainder of the consortium communities, even though located outside is made up of private investors and other their territories. energy companies. European companies are Protests continued but the project was also involved in the project (see Annex 1). declared "of national interest" in 2001. Under In November 2012, the Brazilian National Bank former-President Lula's "Programme to for Economic and Social Development accelerate growth", the renamed Belo Monte (BNDES), committed the remaining R$22.5 – project became one of the flagship initiatives the largest loan ever granted by the bank. Of for large-scale infrastructure development. this, R$3.2 billion will be allocated for social Opposition – including a Segundo Encontro dos and environmental purposes, to investments Povos do Xingu – moved into the courts, with in 11 municipalities in the Xingu region to mixed results, while the Brazilian Institute of mitigate the impact of the project. Civil society Environment and Renewable Natural denounced that no guarantees are in place Resources conducted an impact assessment of that this money will really go to the benefit of the proposal. those affected. The accountability and The environmental licence was granted to transparency of the bank was also questioned. Eletronorte, a subsidiary of Eletrobrás, in 2010, Author: Francesco Pontiroli Gobbi 130565REV1 Contact: [email protected] Disclaimer and Copyright: This briefing is a summary of published information and does not necessarily represent the views of the author or the European Parliament. The document is exclusively addressed to the Members and staff of the European Parliament for their parliamentary work. Links to information sources within this document may be inaccessible from locations outside the European Parliament network. © European Union, 2013. All rights reserved. http://www.library.ep.ec – http://libraryeuroparl.wordpress.com Library Briefing Belo Monte Dam project BNDES claims that investments will directly local, federal and also international courts, create 18 700 jobs as well as 23 000 through including a highly controversial dispute before construction works. According to them, 98% of the Inter-American Commission on Human the equipment used will be manufactured Rights. Locals also lament procedural locally. violations, lack of relevant information being available, incomplete impact assessment and Contested issues political interference in the technical decision- The adequacy, necessity and proportionality of making process. the project are strongly disputed. Opponents criticise it because of its environmental impact, Alternatives lack of consultation of indigenous people and Electricity from hydro plants in the country other social effects. already accounts for 80.2% of the total As for the environmental effects, the impact generated in Brazil. assessment, often criticised as incomplete, In order to meet the growing demand for foresees loss of vegetation and changes in electricity supply, Brazil has many options, water supply. The Belo Monte project would from offshore oil and gas to solar and wind flood a reservoir area of 516 km² – 0.1% of the power and hydropower potential. The Brazilian Amazon forest – and impact on its biodiversity. Energy Ministry has said it chose the Belo The Volta Grande and the Xingu regions would Monte Dam investment due to "availability, receive less flood-water, endangering the cheapness and renewability". The government whole ecosystem, including aquatic and believes that meeting demand with wind and terrestrial fauna. Another environmental biomass energy would be twice as costly, and concern is the reduction of CO2 emissions. even more expensive with solar energy. Using renewable energy is part of the national Civil society laments the unreliability of official strategy to cut emissions by 38.9% by 2020, figures, from full capacity and impact on but experts doubt the official figures and warn affected communities to greenhouse gases that reservoirs in tropical regions can emit and costs. A WWF study suggests that if Brazil methane, a more dangerous greenhouse gas invested more in energy efficiency, it would than CO2. reduce demand for electricity by the Social effects are also under discussion. equivalent of the output of 14 Belo Monte Officially, 5 100 families would be displaced, dams and save R$33 billion. but many commentators claim that the figure Several commentators advocate greater may actually be higher. Several indigenous investment in the field of wind energy, communities would have to be moved, and, including the former director of the Brazilian being highly dependent on the river, might Electricity Regulatory Agency Afonso face indirect consequences: for instance, the Henriques Moreira Santos. He pointed out that decreased flow of the Xingu would reduce Belo Monte is not necessary and that weak fishing yields. The arrival of workers in the area infrastructure hinders the transmission of could also provoke social tension. Strikes, electricity from the site, which could lead to protests, kidnapping of engineers and major blackouts, similar to those which occupation of construction sites are signals of affected the country in 2001-2002. the strong opposition the project faces in the region. A comparative analysis conducted by the Federal University of Rio de Janeiro in 2011 Concerning human rights and legal issues, acknowledged the need for Brazil to increase indigenous people claim that they have not capacity in order to meet demand. It also been adequately consulted on the project, in concluded that the impact of Belo Monte will violation of their rights under the Brazilian be inferior to each of the alternatives, and that Constitution and United Nations and the "costs of alternatives are higher". International Labour Organisation standards. The government questions the need for consultation and claims to have informed the affected communities. Locals and civil society have in response filed several complaints to Author: Francesco Pontiroli Gobbi 130565REV1 Contact: [email protected] Page 2 of 3 Library Briefing Belo Monte Dam project Annex 1 - List of European companies involved in the Belo Monte Dam project1 Allianz - Insurance company Alstom - Supplier of power equipment Andritz - Supplier of power equipment Arcadis Logos - Engineering services Daimler - Trucks and vehicles for construction Iberdrola - Supplier of power equipment JLT Re - Insurance company Kiln - Insurance company Metso Corporation - Supplier of power equipment Munich Reinsurance - Insurance company Voith Siemens - Supplier of power equipment Annex 2 - List of NGOs involved in the Anti-Belo Monte campaign Survival Internacional Greenpeace WWF (World Wide Fund for Nature) ISA (Instituto Socioambiental) Amazon Watch International Rivers Network Avaaz Foundation Rainforest Foundation US Inter-American Assocation for Environmental Defence (Aida) The Nature Conservancy (TNC) Friends of the Earth Conservation International Clinton Global Initiative Movimento Xingu Vivo para Sempre Amigos da Terra - Amazônia Brasileira Sociedade Paranaense de Defesa dos Direitos Humanos (SDDH) 1 These lists are not comprehensive and only include companies/NGOs for which we have reliable references. Author: Francesco Pontiroli Gobbi 130565REV1 Contact: [email protected] Page 3 of 3 .
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