Consulting Report for Brazil

Consulting Report for Brazil - Development Consulting Group...

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1 Development Consulting Group Análise do Projeto da Barragem de Belo Monte 1
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E XECUTIVE S UMMARY § After analyzing the feasibility and potential impacts of the construction of the Belo Monte Dam, the Development Consulting Firm has concluded that the project will offset the long and short-term goals of the current administration and work counter to sustainable development on the economic, political, social, cultural and environmental levels. We recommend that the Brazilian government cease pursuing construction of the Belo Monte Dam due to the detrimental impacts on Brazilian development. § The projected cost of 6.6 billion dollars for construction is extremely optimistic due to delays and continual rising costs. Furthermore, we predict that the actual output of the dam will fall short of the promised 11,000 megawatts annually, as 6,000 megawatts is a more realistic estimate. § Moving forward with the Belo Monte dam will hurt the Brazilian government politically. Public mistrust of the government will increase due to the violation of the Constitution and the lack of public debate on the issue. Brazilian sovereignty will also be compromised, as the project will create a dependency on foreign capital to fund construction of the dam. § Instead of achieving a leveling effect, the project will sustain and strengthen the economic disparity within Brazil. The main benefactors of the dam project will be those involved with the aluminum industry, especially the Chinese government, which owns several mining companies in the area. The Brazilian public will incur the environmental and cultural costs of the project. Jobs created by the construction will be temporary with few benefits to working class Brazilians. § The dislocation of indigenous populations will cause protests and dissent on the local, national and international levels. Furthermore, the destruction of native landscapes will lead to a loss of indigenous cultural traditions unique to Brazil. § The construction and maintenance of the dam presents significant threats to Brazil’s environment. Emissions of greenhouse gasses will greatly increase through submerged rotting vegetation in the reservoir. The dam will also cause an irreversible loss of unique biodiversity in the Amazonian ecosystem. § All of these difficulties will be further compounded by the required construction of additional dams, rendering the economic feasibility of the project highly suspect, and the 2
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political, social, cultural and environmental costs extremely high. As the costs rise and benefits fail to deliver, public resistance is bound to increase, and the probability of garnering financial and political support to finish the entire project will fall. § To meet Brazil’s growing energy needs, and work towards sustainable development, we
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Consulting Report for Brazil - Development Consulting Group...

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