A decree signed this last Monday (9th) by the interim president of the Brazilian Institute of the Environment and Renewable National Resources (IBAMA) presented to the country the terms under which the preliminary license is granted to the Santo Antônio and Jirau hydroelectric power projects on the Madeira River in Rondônia.
The measure has been anxiously expected by several government sectors as well as by businessmen, and was issued even after the Environmental Impact Assessment and Environmental Impact Report (EIA/Rima) were categorically refuted by an independent team of experts hired by IBAMA itself.
All appearances indicate that the issues raised by the team regarding the EIA/Rima that resulted in the denial of the preliminary license in April of this year have not been resolved, nevertheless the licenses were granted. A sort of "preliminary license with caveats" (conditions) was issued for the project, authorizing the government to put the construction to tender. Thus IBAMA transfers responsibility for its concerns over the project to the companies that win the bids and their partners and signals that the plants will be built, one way or another.
The majority of the 33 conditions imposed by Ibama to grant the preliminary license for the Madeira River hydro plants deal with three points that were the basis for the denial of the same license a little over two months ago: doubts regarding sedimentation, the possibility of mercury contamination and effects of the plants on ichthyofauna in the region.
According to analyses by IBAMA, the solution for the uncertainties over sedimentation and silting of the rivers in the region would be in the independent report by Sultan Alam, contracted by the Ministry of Mines and Energy (and refuted by researchers who study the Madeira River, such as hydrologist Jorge Molina). This has not, however, waived the need for monitoring and certain studies determined within IBAMA's 'conditions' for granting the licenses, such as the simulation in a two dimensional model of the sediment flow and actions to optimize the same.
The concern also remains regarding re-suspension of particles of mercury, a highly toxic metal, present in the river bed and consequent contamination of fish and the riverbank population. What previously was the basis for denying the license is now classified as a 'caveat' with a sequence of studies and monitoring for any possible contamination.
The third and perhaps the most controversial issue surrounding the project is regarding fish fauna of the river and its tributaries, especially the so-called large catfish, which are a food staple and basis of the economy of innumerous communities in the region and even in Bolivia, nearby the plants. Sedimentation and mercury-related problems pose a threat to fish in the region, which was one of the reasons for the denial of the license to the project in April of this year. Although no solution has been provided to the problem, new species protection and preservation measures were specified among the conditions to grant the preliminary license, or to grant the building license at the end of the licensing process.
Huge interest of investors - Even with 33 conditions that will be difficult to fulfill and the gradual rise in the estimated cost of the project (currently estimated in 25.7 billion reals for power generation in the two plants), interest by businessmen in the region has increased. With the possible abandonment of the tender by the state-run company, Furnas, to "make the project completely private", according to the government, the dispute over the plants will become more competitive and so far five consortia have shown interest in participating in the tender for the Madeira power plants.
Odebrecht, responsible for the project together with Furnas Centrais Elétricas, has not confirmed Furnas' exit and remains the front runner interested in the tender. Other interested groups headed by Camargo & Côrrea, Suez Energy (French), Shahim and Light have mentioned possible participation in the tenders.
The government estimates that the Santo Antônio plant, with capacity to generate 3,150 megawatts, will go to tender in October of this year and enter operation in 2012. The Jirau plant, with 3,300 megawatts capacity, will go to tender in 2008, and enter operation possibly in 2013.
Reaction - Next week, groups that are fighting against the construction of the Madeira River plants will meet in Guajará-Mirim (RO), 360 kilometers from Porto Velho, to discuss action strategies in light of the granting of the preliminary license to the projects.
In an interview given to Amazonia.org a few weeks ago, researcher Glenn Switkes of the International Rivers Network stated that granting the license for the Madeira plants would send the signal that all environmental and social impacts can be authorized by the government - regardless of the extent of the damage. This disqualifies environmental licensing as a means of preserving the environment from the impacts of large scale projects.
According to Roberto Smeraldi, Director of the OSCIP, Friends of the Earth - Brazilian Amazonia, the granting of the license is the "worst of both worlds" and signifies a lack of technical soundness and causes uncertainty to investors. "They licensed two reservoirs in the midst of the Amazon with no transmission lines. How long will it take to license the lines, where the easement area is larger than that of the reservoirs? They also licensed two navigation locks without having conducted any studies. They didn't need two years to do this, they could have done it in two months", explains Smeraldi in an official communiqué.
Read more about this issue:
Environmentalists criticize granting of licenses - 07/10/2007
Projects in Amazonia may accelerate global warming, warns scientist - 06/19/2007