Brazil Environmental Protection Agency OKs Amazon Hydroplant
Friday November 14th, 2008 / 14h52
SAO PAULO -(Dow Jones)- Brazil's environmental protection agency, Ibama, granted environmental licensing Thursday evening to a power company consortium building a hydroelectric powerplant in the Amazon state of Rondonia. Ibama's press office said Friday that the license gives Energia Sustentavel do Brasil, or Enersus, the permission to begin construction of a 3,150 megawatt hydroelectric dam in Jirau on the Madeira River. Enersus is a consortium of Brazilian utility and construction companies, with a majority stake held by French energy giant GDF Suez (GSZ.FR). The initial licensing agreement is required to lay the groundwork for the heavy construction that will occur next year. Further licensing is expected in early 2009, according to the local Estado newswire. Environmental Minister Carlos Minc was in favor of Ibama pushing the licensing forward out of concerns that hydropower delays would cause utility companies to turn to fossil fuels instead of hydropower. Hydropower is Brazil's main electricity source, but requires extensive environmental licensing due to the flora and fauna in the region. Labor along the rivers also worry native tribes and other Brazilians who make their living fishing along the Madeira River and its tributaries. The government has been pushing larger and even small scale hydropower projects in expectations of electricity demand outstripping supply in Brazil. In such a case, industrial and other consumers would end up paying more for electricity, impacting national inflation. There are two large hydroelectric power plants currently being built along the Madeira River. The other, in Santo Antonio, Rondonia, is roughly the same size and is currently being cleared for construction. The Santo Antonio consortium is made up of an investment fund set up by Santander Bancorp (SBP) and Banif SGPS (BNF.LB) bank in Portugal, and Brazilian federally-owned power company Furnas. -By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=Zl42RD3mDSA12KI2spLZ%2Bg%3D%3D. You can use this link on the day this article is published and the following day.
