Inambari Hydroelectric Project

A 2,000 MW dam, the largest in Peru, at confluence of Madre de Dios, Puno and Cusco will send 75% of electricity to Brasil

Context[1]

Negotiations are underway for the construction of six hydroelectric power plants in the Peruvian Amazon Region in a joint initiative of Presidents Alan Garcia and Luis Inacio Lula da Silva. Serious inquiries about the nature of the intiative and its implications for the region are not resolved which signals further problems.

In the process of rapidly oexpanding into the Peruvian jungle, which in the last decades has included road infrastructure, petroleum and mining exploitation in addition to usual agriculture, cattle ranching and forestry activities, another determining element has arisen.  It is the exploitation of hydroelectric potential.  Presidents Alan García from Peru and Luis Ignacio Lula da Silva from Brazil formally launched, on April 28th 2009, the process that will culminate with the operation of an undetermined number of large dams in the high jungle rivers of Peru that are mainly aimed at supplying the insatiable energy demand of the neighboring country.
 
News of the signing of a memorandum of intent between Brazil and Peru, which includes a reference to possible hydroelectric plants, was commented on in far greater detail in Brazil than in Peru, where it was done almost without notice despite its very serious geopolitical, economic, social and environmental importance.  In essence, the memorandum proposes allowing Brazil to study, finance, build and operate up to six very large hydroelectric power plants on Peruvian soil to supply its energy requirements by purchasing a large part of the energy produced in Peru.  The hydroelectric plants chosen by Brazil are Inambari (2,000 MW), Sumabeni (1,074 MW), Paquitzapango (2,000 MW), Urubamba (940 MW), Vizcatan (750 MW) and Chuquipampa (800 MW) and, of course, the corresponding transmission lines which will be integrated into the Brazilian system.  The total cost of these six undertakings will amount to the order of US$16 billion and the first project selected is on the Inambari River, at the confluence of Madre de Dios, Cuzco and Puno departments at a cost of US$4 billion.  To give an idea of what it entails, Inambari would be the largest dam in Peru and the fifth largest in Latin America in terms of generation of energy, flooding an area of over 46,000 hectares.

BACKGROUND ON THE Inambari PROJECT

• 1976, Evaluation of National Hydroelectric Potential, proyecto INA 200, one of the most attractive at the national level. 1,335 MW
• November 2006, Memorandum of Understanding between Ministries of Energy and Environment of Peru and Brazil for the establishment of a permanent, mixed commission on energy, mining and geology
• May 2008, bilateral deal between Peru and Brazil for energy cooperation. Construction of 17 hydroelectric dams en Peru, Inambari is one of these
• June 2008, Temporary Concession to EGASUR to perform studies of the Inambari Hydroelectric Dam (for 2 years)

about electric generation company of the southern amazon (Empresa de Generación Eléctrica Amazonas Sur- EGASUR) and the studies performed

• Empresa de Generación Eléctrica Amazonas Sur, EGASUR.  Listed in the public registry of Puno
• Consortium made up of OAS (51%), Electrobrasy FURNAS (49%)
• FURNAS is part of the Madeira Energy Consortium (San Antonio dam in the Madeira Complex)
• The EIA is in charge of ECSA Ingenieros (Engineers), currently in operation.
• The first informative workshops have been held

On reviewing the information, one discovers that the actions to be taken in order to carry out this project were being implemented long before the memorandum was signed.  According to the media, two new companies are already working in Peru, the Empresa de Generacion Electica Amazonas Sur SAC, made up mainly of Engevix, the main consulting firm in Brazil, and Inambari Geracao de Energia, a consortium made up by Brazilian state-owned Eletrobras, Furnas and the construction company OAS, also Brazilian.  They apparently already have a credit of US$2.5 billion from the Banco Nacional de Desenvolvimiento Economico e Social (BNDES).  The studies, carried out by the first of the mentioned corporations are already being carried out by another Brazilian company, PSR Consultants, according to a ministerial resolution of Energy and Mines given in June 2008, in other words a year before the presidential meeting.  It could be true that this was not a “state secret” but it also undeniable that the government made no effort to divulge this important event affecting the nation’s future.  In fact, the six dam projects are not new. They were already proposed in the 70s based on a study made by a specialized company (Lahmeyer-Salzgitter) with financing by the German government (GTZ) and the World Bank. In this regard, numerous possibilities were detected, 14 of which were priorities.  Brazilians chose 6 of these which were most convenient.

The corporations involved have already announced some of the results of the environmental impact study of Inambari.  It predictably says, in essence, that "there is no problem” and if there were any, they are easily resolved.  This is highly unlikely when we already know, for example, that the reservoir will flood all the existing agriculture in the area, as well as the illegal gold mining and various populated centers which, also, due to the characteristics of the valley, will be unable to be reallocated appropriately. 

REFERENTIAL DATA about the magnitude of the project

• The Madeiras complex, composed of the San Antonio and Jirau dams, together have a projected generation capacity of 6,450 MW.
• At the national level, the Mantaro complex, the largest, has an installed generation capacity of 1,008 MW and is composed of two dams.  
• The exploitation of gas in Camisea, which included the construction of plants and a transportation system, respresented an investment of US$3.3 billion.  
• The reservoir would be the second largest body of water in Peru.

about the benefits of the project

All updates