This multi-billion dollar hydroelectric complex threatens one of the Amazon Basin’s main southern tributaries.
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Location |
Bolivia; Brazil
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Status |
Financed
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The Madeira River Hydroelectric Complex constitutes the largest hydroelectric project in the Amazon. The project pretends to dam the second largest river of the Amazon basin, inferior only to the Amazon River itself. Due to its characteristics and Andean origins, the Madeira River differs greatly from the rest of the major tributaries of the Amazon. The Madeira River carries half of the sediments of the entire basin and feeds one of the most physical and biological diverse regions of the world that is shared by three countries: Bolivia, Brazil and Peru.
The design of the Madeira River Hydroelectric Complex involves the construction of four hydroelectric plants. Two of them, Santo Antonio and Jirau currently under construction, are located in the state of Rondonia, Brazil, near the border with Bolivia. A third one, Cachuela Esperanza located in northern Bolivia, is in advanced stage of studies. And the fourth one, Guayara-Mirin located in binational waters Brazil-Bolivia, is still in initial studies.
The environmental impact studies of the dams of Santo Antonio and Jirau have identified severe impacts of significant high magnitude that would affect not only fish, wildlife and flora but also the population itself. The studies also conclude that the dams will trigger the spread of tropical diseases, as water flow is interrupted. The studies also warn that the severity of such impacts will not only be felt in Brazilian territory but also in neighboring territories, Peru and Bolivia. (See Concerns for more detail)
The construction of these dams and other 80 projects in the pipeline respond to the need for the Brazilian government to secure energy sources to meet the huge demand of its major industrial region hubs and major cities; it also responses to the need for Brazil to reduce its dependence on fossil fuels. At the same time, these mega projects represent major investment opportunities for private companies and the Brazilian multilateral banks. For these reasons, Brazil is being pushing for decades for the construction of large dams like Tucuruí, Balbina and Itaipu; however, Brazil has currently pushing for not only dams in its own territory like San Antonio, Jirau or Belo Monte dam, but also outside its borders like Inambari and Cachuela Esperanza in Peru and in Bolivia respectively, among others.
the amazon basin ("The Smithsonian Atlas of the Amazon" de Michael Goulding)
The Madeira River begins in the Andes and is fed by the waters of the Beni, Madre de Dios and Mamore rivers in the section known as Upper Madeira. At its confluence with the Amazon River, is one of the five largest rivers in the world, both, its length and flow and also because it provides the main suspended sediment and dissolved solids from the basin.
In Bolivia, the Amazon basin occupies 66% of the entire territory. Furthermore, almost all the rivers of the Bolivian Amazon territory converge in the Madeira River. Read more about the characteristics of the basin of Rio Madeira.
The Maidera dams are the gateway to the exploitaion of the Brazilian Amazon
- Satisfy the huge energy demand of Brazil
- Create a waterway system for the transportation of the Brazilian soy production
The hydroelectric complex of dams in the Madeira River are the main project within the Initiative for the Integration of South American Infrastructure (IIRSA), which is an agreement among the 12 continent's governments to promote the construction of mega infrastructure projects in the sectors of transportation, energy and communications. In Brazil, the Madeira Complex are of vital importance within the Growth Acceleration Plan (PAC, by its acronyms in Portuguese), which is a program of major investments to enhance Brazilian competitiveness and whose execution is a priority for the current government.
Components
The original draft of the Madeira River Hydroelectric Complex consists of [1]:
• The construction of a 4250 Km long waterway (including the section between Ichilo and Mamore) that enables the navigation of large vessels in the Madeira, Madre de Dios and Beni rivers.
• Four hydroelectric dams with locks (Watergates) for navigation, Santo Antonio and Jirau in Brazil, Cachuela Esperanza in Bolivia and a fourth one in the Bolivian-Brazilian binational waters.
• The transmission line (2500 km, 765,000 volts) to the industrial cities of Brazil (Rio and Sao Paulo).
location and area of influence of the Madeira River Hydroelectric Complex
The projected costs for San Antonio, Jirau and transmission lines has been amended many times but is estimated to be between 16 and 24.5 U.S. billion dollars. Given this, the costs of power generation of its infrastructure will be among the highest in Brazil, about U.S. $65 / MWh.
The National Bank for Economic and Social Development (BNDES by its acronyms in Portuguese) is the principal financier of the construction of the two Brazilian dams. In the case of Santo Antonio, BNDES has financed directly about R$ 6.6 billion, about 65% of the total estimated for this dam. The rest of the cost I in co-financing with bank consortiums such as Santander, Bradesco, Unibanco and others that has managed to mobilize R$ 2.51 billion. For Jirau, the total amount financed by BNDES is R$ 7, 21 billion which corresponds to 68% of the total cost of Jirau.
In January 2008, the official outcome of the tender for the construction of Santo Antônio gave the Madeira Energy Consortium (now called Santo Antonio Energia) the winner bet. The San Antinio Energy if formed by Furnas (39%), Odebrecht (18%), Andrade Gutierrez (12% ), Cemig (10%) and a shared fund created by Banif and Santander banks (20%). In May 2008, the Consortium Sustentável Energia do Brasil (CEBS), led by French group Suez (50%), Camargo Correa (10%), Eletrosul Centrais (20%) and San Francisco Hydroelectric Company (20%) was awarded the construction of Jirau. So, currently, both projects are under construction.
The negative impacts of the Madeira Complex will join the process that for decades has been destroying the Amazon. However, no infrastructure projects by itself have had a global impact on the Amazon, as the Madeira River Hydroelectric Complex will have alone. Reasons for alarm are obvious. Among them are a catastrophic impact on fish and fauna, rivers growth and effects on the marshlands, flooding of farmland and spread of epidemics. Among the social impacts are the displacement of populations, threats to voluntary isolated indigenous groups, expansion of unsustainable activities and uncontrolled migration.
See also:
• Timeline: the history of the project month by month.
• Action: civil society initiatives questioning the megaproject.
• Library: The most complete compendium of documents relating to the project from all sectors.
• Contacts: Relationship of activists working to resist the project, in Brazil and Bolivia.
References
[1] Assessment 2006: Urgent Issues Environment and Development. P. Molina. (March 2007)