Brazil's environmental agency has approved the construction of the Belo Monte Dam, a 11,200 MW hydroelectric power plant on the Xingu River basin, in the Amazon rain forest. The agency has given a license to the North Energy consortium for the construction of the dam which should kick off in June.. The investment is estimated at $17bn, with commissioning of the plant in 2015.
Belo Monte will be built on the Xingu river, in the Amazon region. It will be the world's third largest hydro plant and the second largest in Brazil, after the 14 GW Itaipú Brazilian-Paraguayan plant. The Norte Energia consortium is led by state-run utility Eletrobras Chesf, which holds a 49.98% stake. Other participants include Queiroz Galvão (10.02%), Galvão Engenharia (3.75%), Cetenco Engenharia (5%), Mendes Júnior (3.75%), Serveng (3.75%), J Malucelli (9.98%), Contern (3.75%) and Gaia Energia (10.02%). Norte Energia won the rights to build and operate Belo Monte in an auction held in April 2010. Investment in the project are would be about 25bn Reais. Brazilian national development bank BNDES will finance up to 80%.