Brazil’s environment agency Ibama has approved the start of initial construction work on the 11,233MW Belo Monte Dam on the Xingu River in the Amazon region.

The agency issued a license yesterday which allows the project developers – the Norte Energia consortium – to clear forest land at the project site and prepare infrastructure for the start of construction work.

Ibama had issued a preliminary licence for the project in February last year, subject to conditions covering issues relating to water quality, wildlife, sanitation, resettlement, compensation and rehabilitation of degraded areas.

The contract to develop the project was awarded to Norte Energia in August following a bidding process that had to be halted on several occasions.

The $17B project, to be located in the state of Para, will help Brazil meet soaring demand for electricity once developed. It has however faced fierce opposition from environmental groups concerned about negative impacts on the ecosystem and wildlife in the region.


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