Regulatory News

The consortium that won the bid for the Belo Monte Hydroelectric Plant in the state of Para will have to invest R$1.5 billion (US$824 million) to compensate for the environmental impacts from the project which was initially estimated at a total cost of R$20 billion (US$11 billion). The calculation comes from the Minister of the Environment, Carlos Minc, who believes the required license will be granted in three weeks. The companies will have to spend money on sanitation, constructing a technical school to manage forest products, and adopting an endangered species.

The amount is well above what was required by the Jirau and Santo Antonio hydroelectric plants - R$400 million (US$220 million) and R$450 million (US$247.4 million), respectively. This is because the Madeira River plants will be much smaller than the Belo Monte plant – the smaller plants together will generate 40% less energy.

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