The most expensive project in Brazil costs 40 BILLION, promises to be the third largest in the world, but is full of distrust and controversy, mainly due to criticism from environmental groups, NGOs, and indigenous communities

Have you ever heard about the most expensive construction in Brazil? It promises to be the third largest in the world in its sector and is surrounded by controversy and suspicion. Environmental groups, NGOs and indigenous communities have raised serious criticisms of this magnificent work.

We are talking about the Belo Monte Hydroelectric Plant, a giant project located in the heart of the Amazon that has generated intense debates since its inception.

A Hydroelectric Power Plant Belo Monte, located on the Xingu River, in Pará, is one of the largest engineering works in Brazil.

With a monumental investment of R$40 billion, the plant was planned to meet the country's growing energy demand.

With an installed capacity of 11.233 megawatts, Belo Monte is the third largest hydroelectric plant in the world, second only to the Three Gorges Plant, in China, and the Itaipu Plant, on the border between Brazil and Paraguay​.

Since coming into operation in April 2016, Belo Monte has played a crucial role in Brazil's energy supply.

In 2024, the plant generated enough energy to supply homes in the North, Central-West and Rio de Janeiro regions.

Additionally, we bring Belo Monte is the largest 100% Brazilian hydroelectric plant, contributing 5% of the national electrical matrix and 10% of the country's hydraulic generation capacity.

Environmental and social challenges

However, the construction of Belo Monte faced a series of challenges and criticisms from the beginning. Environmental groups, NGOs and indigenous communities expressed significant concerns about the environmental and social impacts of the project.

The construction of the plant resulted in the deforestation of large areas of the Amazon Rainforest, altering river ecosystems and affecting local fauna and flora.

Indigenous communities, such as the Juruna and Arara people, suffered from the flooding of their ancestral lands, losing access to vital natural resources and facing difficulties adapting to new areas.

Furthermore, Belo Monte was the target of several legal actions, questioning the legality of environmental licensing and the methods of consultation with affected communities.

Economic benefits and regional development

Despite the controversies, Belo Monte represents an economic landmark for the region. The plant generated direct and indirect jobs and boosted the local economy with investments in infrastructure and services.

Since the beginning of its operation, Belo Monte has paid more than R$1,07 billion in royalties, benefiting the government of Pará, in addition to the municipalities of Vitória do Xingu and Altamira.

In the long term, Belo Monte is expected to contribute to reducing the cost of electricity in Brazil, benefiting both industry and residential consumers. The project also brought significant improvements to infrastructure, such as roads and schools, in the Altamira region.

Future of the Belo Monte Plant

The future of Belo Monte continues to be a topic of debate. O Brazilian government promotes the plant as an example of infrastructure investment that drives sustainable development.

However, environmental and social challenges remain, and experts suggest that Brazil should seek a balance between economic development and environmental conservation, promoting policies that guarantee the protection of affected communities and local ecosystems.

In any case, we note that the Belo Monte Hydroelectric Plant is a symbol of the ambitions and contradictions of Brazilian development.

With an investment of R$40 billion, the plant represents a significant opportunity for the country in terms of energy security and economic development.

However, environmental and social concerns highlight the need for more inclusive and sustainable approaches to large-scale infrastructure projects in Brazil.

The other side

In a note sent this Monday (05), Norte Energia, concessionaire of the Belo Monte Hydroelectric Plant, stated that, regarding the claim that the project was responsible for “deforestation of large areas of the Amazon Forest”, the company highlights that, During the construction process of Belo Monte, Ibama issued authorizations with the delimitation of polygons for work sites:

However, it is noteworthy that the area of ​​vegetation suppression carried out by Norte Energia corresponds to 0,04% of the total area of ​​the Xingu River basin and 0,0045% of the Legal Amazon. This action included work to rescue groups of plants and chase away and rescue animals, and prevented the flooded vegetation from generating greenhouse gases, as submerged plants emit carbon dioxide during their decomposition.

In addition to other benefits for the region, the reforestation projects conducted by Norte Energia in Médio Xingu have recovered, by June 2024, an area equivalent to 3 football fields. 1,7 million native seedlings of 159 species were planted, some of which are threatened, such as acapu, mahogany, chestnut and pau-cravo, as well as ipês and fruit trees. The company's goal is to recover 7,6 hectares by 2045, which will correspond to 5,5 million native seedlings planted in the Amazon region.

Regarding the statement that indigenous communities “suffered from the flooding of their ancestral lands”, Norte Energia clarifies that no Indigenous Land was flooded by the project and no indigenous community had to leave their place of origin. It is worth highlighting that before Belo Monte, there were 2 indigenous people in the region in 26 villages. There are currently 8.675 – 5.203 indigenous people in villages and 3.472 in an urban/riverside context – from nine different ethnicities in the Middle Xingu.

Since the installation of the plant, within the scope of the Basic Environmental Project of the Indigenous Component, the company has invested, to date, around R$ 1,2 billion and executes 42 programs and projects, approved by Funai in 2012, with emphasis on education, health, preservation of cultural heritage, productive activities, territorial and environmental protection. 

The company has also structured and maintained Funai's Remote Monitoring Center (CMR) since 2015, which monitors 98% of the country's Indigenous Lands, where 867,9 indigenous people live. The tool monitors and analyzes images and data to combat deforestation, degradation, forest fires and criminal occupation and use in around 600 Indigenous Lands in the Legal Amazon.

Still regarding the relationship with indigenous communities, the company maintains a permanent dialogue with the people of the Middle Xingu, which takes place in a structured and participatory way through daily interactions maintained by the Communication Program and in tripartite meetings, which involve the participation of indigenous representatives and the indigenous body for discussion and analysis of the actions being carried out.

The company also reinforces that, in addition to the direct and indirect benefits mentioned in the article for the region, such as job creation, royalties and energy security, the construction of Belo Monte also brought other positive factors:

• In Health, the Altamira General Hospital was built, with a capacity of 100 beds to care for high and medium complexity cases. In addition to building the hospital, Norte Energia was also responsible for equipping it. In addition, 32 Basic Health Units were built in the five municipalities surrounding the plant and another 32 Basic Indigenous Health Units on Indigenous Lands.

• Another indicator is the 97% drop in malaria cases in the five municipalities in the hydroelectric plant's area of ​​influence, the result of a program led by the company to combat the disease, which is endemic in the region.

• Norte Energia also built 609 km of water and sewage networks and implemented 92% of Altamira's sanitation network, connecting 19 thousand properties. 

• In Education, the company reinforced the structure of the area in the five municipalities neighboring the project with 78 works, representing around 492 classrooms built and/or renovated, directly benefiting 23,2 thousand students. Educational spaces were also built, such as computer rooms and reading rooms.

• In Security, Norte Energia built the Vitória do Xingu Penitentiary Complex, renovated police units and donated 80 vehicles and a helicopter to the Public Security Secretariat of Altamira.

And you, what do you think? Is the construction of mega hydroelectric plants the right path for Brazil's development, despite the environmental and social impacts? Comment below!