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Home › Dodgy Deals ›
Dodgy Deal
Rio Madeira dams: Jirau and Santo AntonioBrazil

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

International Rivers: Brent Millikan

Last update: 2015-11-01 14:53:10

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

International Rivers: Brent Millikan

Last update: 2015-11-01 14:53:10
Why this profile?

What must happen

These mega-projects are not indispensable for providing energy for Brazil’s development, although the government is trying to present them as such. The Brazilian government must be convinced that the river bank dwellers and indigenous peoples, and ecosystems  along the rivers of Amazonia are worth protecting.

A key alternative to the Madeira River dams is increased energy efficiency. Losses in the distribution of energy in the country's electricity system - for both technical and commercial reasons - amount to 16.5% (compared to 6.5% on average in Europe). Tackling these losses would be another lucrative alternative to expensive mega-projects. Wind, biomass, and solar energy and small hydro projects could also contribute significantly towards meeting Brazil’s future energy needs. With the global economic crisis, energy consumption in Brazil has fallen, providing an opportunity to reorient the country’s energy policy.

In order to live up to their responsibilities and to protect their own and clients' assets as well as their reputation, financial institutions must abstain from getting involved in this project.

For further information, please get in touch. Our contacts are mentioned above.

About
Sectors Hydroelectric Power Generation
Location
This project has been identified as an Equator Project

Located in the state of Rondônia - Brazil, the Madeira River is the principal tributary of the Amazon River, with its basin covering about one-quarter of the Brazilian Amazon. The Madeira River project consists of two huge hydroelectric dams: Santo Antonio (projected cost US$ 4.35 billion, current estimate US$ 6.7 billion, installed generating capacity 3,150 MW) and Jirau (projected cost US$ 4.55 billion, installed capacity 3,300 MW).

The project is the cornerstone of the Brazil-Bolivia-Peru hub of the Initiative for the Integration of South American Infrastructure, or IIRSA. IIRSA is a blueprint for 335 large-scale infrastructure projects being proposed by the governments of South America, and supported by the Inter-American Development Bank (IDB), the Andean Development Corporation (CAF), and Brazil's National Development Bank (BNDES).

The construction of the project - plus two additional dams upstream - would, according to the project sponsors, open a 4,200 km industrial waterway for barge passage, permitting transport of soybeans, timber, and minerals to Atlantic and Pacific ports.

In January 2007 the project was included in the Accelerated Growth Programme (PAC in Portuguese) - an ambitious Brazilian Federal Government plan to invest more than BRL 900 billion (US$400 billion) between 2007 and 2010, in more than 2000 infrastructure development projects. Since then, the Rio Madeira dam project has been pushed forward rapidly.

Impacts

Social and human rights impacts

According to the project Environmental Impact Assessment (EIA), some 3,000 people will be forced to move from their homes, although judging from past dam projects in Brazil, this number is probably an underestimate. The decline in fisheries will seriously affect commercial and subsistence fishermen. Thousands of people living downstream will face declining crop yields as a result of the loss of the annual deposition of fertile silt on the flood plains,will be deprived of transportation and run the risk of mercury contamination.

Indigenous groups will be affected by thousands of migrants arriving in search of work on construction crews. Public health impacts in a region where malaria and other tropical diseases are endemic are likely to be substantial, with stagnant pools of water providing breeding grounds for mosquitoes and other disease-carrying insects. A study in August 2009 from the health and environmental department in Porto Velho, Rondônia, showed that since the construction of Jirau's plant began malaria incidents have increased 63,6%.

Furthermore, there are signs that indicate the presence of isolated indigenous groups in the area to be flooded by the dams.

Indigenous rights

Survival International has stated that "there has been very little consultation with indigenous peoples about the project, and they did not give their free, prior and informed consent for the dams to be built. This is in violation of Brazil's constitution and Convention 169 of the International Labour Organisation which has been ratified by Brazil."

Amazon Watch documents that Brazil's National Indian Foundation (FUNAI), the government indigenous affairs department, has strong evidence that indigenous peoples in voluntary isolation live in the region of the Madeira Complex. The two consortiums building the project disregarded warnings about the presence of these peoples. In late 2009, an expedition led by FUNAI and the Brazilian NGO Kanindé, among others, confirmed the presence of four communities of isolated indigenous peoples in the area where the Madeira Complex is being constructed. The report issued by the expedition concluded that the groups are likely to have already fled their territory due to noise coming from the construction sites. As has frequently happened in the past, the contact between isolated indigenous peoples and outsiders could decimate the indigenous peoples because of their lack of immunity.

Other human rights issues

Bolivian organizations filed a complaint at the Organization of American States (OAS) alleging violation of human rights, such as the right for information, due to Brazilian government's reluctance to consult the government of the neighboring country and perform studies to assess potential trans-boundary impacts of the Madeira River dams.

Populations living in the area affected by the dams say they have been pressured by the companies to move, despite the fact that they have not come to agreements regarding compensation and resettlement.

Violations of Brazilian and international labor legislation have already occurred since irregular working conditions at a construction site associated with Jirau's plant have been confirmed. Moreover, also in September, workers at the Jirau's construction site decided to strike for better payment and working conditions. 

 

The World Commission on Dams found that women and ethnic minorities were disproportionately affected by dam projects. As women are often responsible for ensuring the sustainable livelihoods of their families, impacts on these livelihoods through destruction of fisheries, flooding of agricultural land and forests, and displacement often result in women bearing a disproportionate share of the costs. It is women who are often left with the burden of caring for their families, finding alternative land and water sources and alternative livelihoods when these are taken away through the development of destructive dam projects.


Environmental and climate impacts

The region is a treasure of biodiversity. The Madeira River supports the life of an estimated 750 fish species, 800 bird species, and other endangered rainforest wildlife, and is home to rubber tappers, Brazil nut gatherers, and fishermen. Protected areas, including a reserve used by people who extract natural forest products, will be inundated by the dams.

The Madeira River project will further contribute to the fragmentation of Rondônia's ecosystems and to the clearing of vast areas of the region's remaining forests. A 600% increase in deforestation rates over last year was already reported in the area surrounding the Rio Madeira, after the preliminary license for the dams was granted in July 2007. The dams will seriously affect migratory fish and other aquatic species on the Madeira. Several species of large catfish migrate some 4,500 km each year to the upper Madeira to reproduce. Construction of the dams will block these migration routes, affecting the survival of the catfish. In addition, the dams are likely to cause more flooding than expected due to the huge amount of sediments carried by the Madeira river (around 500 million tons/year, equivalent to all other rivers in the Amazon basin) and cause the disruption to 33 endangered mammal species that are found in the project area.

Many suspect that the project sponsors are after something more ambitious: opening the upper Madeira to navigation by fitting the dams with locks. The extra cost would be small. Lower transportation costs would encourage farmers to plant much more soya and grains - at the expense of the remaining forest.

Large dams in the rainforest also emit enormous quantities of greenhouse gases, including methane, contributing to global warming.

Financiers
Institution type
Finance type
Year

Further information on finance:

  • Brazil bank signs its largest loan, for 3,300-MW Jirau, Hydroworld.com, 2009
  • Santander Bank reports suspension of funding for controversial Brazilian dam, Survival International, 2011

 

 

Companies

Alstom

France
Website

Andrade Gutierrez

Brazil
Website

Andritz

Austria

Camargo Corrêa

Brazil
Website

Cemig

Brazil
Website

Dongfang Electric Corporation (DEC)

China
Website

Eletrobras

Brazil
Profile

En+ Group

Russian Federation
Profile

ENGIE

France
Profile
Website

Furnas

Brazil
Website

Odebrecht

Brazil
Website

Orano

France
Profile
Website

Va Tech

Austria
Website

Voith Hydro

Germany
Website
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Dirty Business: Unraveling Corruption in Brazil’s Dam Industry

2015-02-07 | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

BankTrack Blog: “Green Bond” issue risks raising finance for destructive dams

2014-07-09
Blog
BankTrack news BankTrack blog Partner news Partner blog

“Green Bond” issue risks raising finance for destructive dams

2014-07-09 | Ryan Brightwell – BankTrack, Zachary Hurwitz – International Rivers
Blog
BankTrack news BankTrack blog Partner news Partner blog

Cachuela Esperanza: Hope or Havoc on the Rio Madera?

2011-08-01 | Bolivia | The official blog of Amazon watch
BankTrack news BankTrack blog Partner news Partner blog

At next year's Earth Summit, the world will look to Brazil to step up on smart energy, Amazon conservation, and sustainability

2011-06-29 | SwitchBoard.com
BankTrack news BankTrack blog Partner news Partner blog

Santander Bank reports suspension of funding for controversial dam

2011-05-05 | Survival
Blog
BankTrack news BankTrack blog Partner news Partner blog

Santander Bank reports suspension of funding for controversial Brazilian dam

2011 | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Amazon Indios condemn destructive Madeira river

2010-12-24 | Rainforest News
BankTrack news BankTrack blog Partner news Partner blog

Brazil: environmental impact studies fail to stop harmful dams

2010-08-10 | HydroWorld.com
BankTrack news BankTrack blog Partner news Partner blog

GDF takes control of International Power to form energy giant

2010-08-10 | London/Frankfurt | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Hydroelectric dams pose threat to tribal peoples, report warns

2010-08-09 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

The Forgotten Downstream Victims of Large Dams

2010-06-18 | The Huffington Post
BankTrack news BankTrack blog Partner news Partner blog

Un projet de GDF-Suez met en danger les dernières tribus isolées d'Amazonie

2010-04-07
BankTrack news BankTrack blog Partner news Partner blog

Un projet de GDF-Suez met en danger les dernières tribus isolées d'Amazonie

2010-04-07 | Le Monde
BankTrack news BankTrack blog Partner news Partner blog

Greenwashing Hydropower: The Problems with Big Dams

2010-02-01 | World Watch magazine
Blog
BankTrack news BankTrack blog Partner news Partner blog

Santander deixa projeto de usina no rio Madeira

Valor Econômico
2010-01-14 | São Paulo | Amigos da Terra- Amazônia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Entidade entra com petição para esclarecer os impactos da usina do rio Madeira

2010-01-11 | São Paulo | Amigos da Terra- Amazônia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Expedição confirma presença de índios isolados perto de hidrelétrica em RO

Terra Magazine
2009-12-23 | São Paulo | Amigos da Terra- Amazônia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Sequência de fotos evidencia dano ambiental causado por usinas do rio Madeira

2009-12-16 | Sao Paulo | Amigos da Terra-Amazônia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Rio Madeira: Comissão Interamericana de Direitos Humanos, da OEA, recebeu denúncia contra as hidrelétricas Santo Antônio e Jirau

Telma Monteiro
2009-11-09 | São Paulo | Amigos da Terra- Amazônia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Rondônia: MTE descobre trabalhadores em regime de escravidão em obra de Jirau

Ministério Público da União
2009-09-12 | São Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Ribeirinhos dizem que peixes estão desaparecendo do rio Madeira por conta da construção das usinas

Rondoniaaovivo.com
2009-09-10 | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Malária aumenta 63% em distrito de Porto Velho por causa de construção de usinas

Agência Brasil
2009-08-15 | São Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Funcef e Petros cobiçam 10% da Camargo em Jirau

Valor Econômico
2009-08-10 | São Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Santander é alvo de campanha internacional contra impactos ao meio ambiente

Eco-Finanças
2009-06-19 | São Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Spain’s Banco Santander Criticized for Hypocrisy

Santander signs Equator Principles while financing Madeira Dam
2009-05-13 | Washington, D.C. | Amazon watch
Blog
BankTrack news BankTrack blog Partner news Partner blog

Polêmicas ambientais e crise afastam financiamento de investidores privados

Folha de Sao Paolo
2009-03-08 | São Paulo- Brazil | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Environmentalists Blast Construction License for Amazon Dam

2008-08-14 | Sao Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Environmentalists go to court to suspend auction Rio Madeira Dam Project

2007-12-06 | São Paulo and Brasília | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

High financial risks for Rio Madeira Dam Project

Study by Amigos da Terra warns investors
2007-10-26 | São Paulo | Amigos da Terra Amazonia Brasileira
Blog
BankTrack news BankTrack blog Partner news Partner blog

Independent Experts Find Fatal Flaws in Amazon Dam Studies

International Rivers
2006-11-13 | Sao Paulo, San Fransisco | Amigos da Terra Amazonia Brasileira
Resources
Documents
Images
Videos
Links
2014-08-01 00:00:00

Der Belo Monte Staudamm und die rolle europaischer Konzerne

NGO document
2014-08-01 00:00:00 | GegenStromung
2010-11-06 00:00:00

Voluntary approach will not resolve dam conflicts

NGO document
2010-11-06 00:00:00 | International rivers
2010-08-01 00:00:00

Protecting rivers and rights: Ten years after the World Commission on Dams report

Other document
2010-08-01 00:00:00 | International Rivers et. al.
2009-06-19 00:00:00

Setem pide al Santander en su Junta de Accionistas que se retire de Río Madeira

Other document
2009-06-19 00:00:00 | Setem
2009-06-19 00:00:00

Intervention of Annie Yumi Joh - SETEM at Santander´s AGM 2009

Other document
2009-06-19 00:00:00 | Annie Yumi Joh
2009-01-29 00:00:00

World Social Forum manifesto on Rio Madeira

NGO document
2009-01-29 00:00:00 | Amigos da Terra Amazonia Brasileira
2008-06-21 00:00:00

Intervention SETEM - Victor Maeso at Santander AGM

Other document
2008-06-21 00:00:00
2008-06-21 00:00:00

Intervention Luis Novoa - Red de Brasil sobre Instituciones Financieras Multilaterales at Santander AGM

Other document
2008-06-21 00:00:00
2008-06-21 00:00:00

Intervention of Annie Yumi Joh - SETEM at Santander AGM 2008

Other document
2008-06-21 00:00:00
2007-12-15 00:00:00

Santander: Vínculos financieros con empresas y projectos controvertidos en el mundo

NGO document
2007-12-15 00:00:00 | SETEM
2007-11-20 00:00:00

Brazil offers Bolivia "a gift" - but at what cost?

Other document
2007-11-20 00:00:00 | Glenn Switkes
2007-10-25 00:00:00

Complex Project, Mega Risk: Financial Risks of Rio Madeira Dam Project

BankTrack publication
2007-10-25 00:00:00 | BankTrack, Amigos da Terra
2007-09-26 00:00:00

Rio Madeira, Amazon river under threat

NGO document
2007-09-26 00:00:00 | Amigos da Terra Amazonia Brasileira, International Rivers, others
2007-09-21 00:00:00

Civil society letter supporting binational commission

Correspondence
2007-09-21 00:00:00 | NGO coalition
2007-07-10 00:00:00

Correspondencia: Ministerio de relaciones y cultos de la República de Bolivia al ministro de relaciones exteriores de la República Federerativa del Brasil

Correspondence
2007-07-10 00:00:00 | David Choquehuanca, ministro de relaciones exteriores y cultos
2007-07-09 00:00:00

Rio Madeira Preliminary Environmental License

Other document
2007-07-09 00:00:00
2007-06-25 00:00:00

Manifesto Brazilian Ictiology Society

Other document
2007-06-25 00:00:00
2007-02-03 00:00:00

Pronunciamiento de los Pueblos Amazónicos de Bolivia y Brasil frente a la próxima reunión de los presidentes de los gobiernos de Bolivia y Brazil, Evo Morales e Ingácio Lula da Silva, sobre las represas del río Madera

Other document
2007-02-03 00:00:00 | Representatives of towns and communities of the Amazon region of Bolivia and Brazil
2006-11-24 00:00:00

Report on Rio Madeira EIA Breaches

NGO document
2006-11-24 00:00:00 | Amigos da Terra Amazonia Brasileira
2006-11-20 00:00:00

30 Errors in the Environmental Impact Assesment for the Madeira River Hydroelectric Complex

NGO document
2006-11-20 00:00:00 | Amigos da Terra Amazônia Brasileira, International Rivers
2006-11-14 00:00:00

Informative Note 10/2006

Other document
2006-11-14 00:00:00
2006-11-02 00:00:00

Fact sheet on Rio Madeira

NGO document
2006-11-02 00:00:00 | International Rivers
2006-10-16 00:00:00

Informative Note 08/2006

Other document
2006-10-16 00:00:00 | Brazilian Ministry of Environment
2006-10-12 00:00:00

Pronunciamiento de la Región Amazónica de Bolivia en torno a las represas proyectadas sobre el río Madera

Other document
2006-10-12 00:00:00 | Representatives of the northern Amazon region of Riberalta, Bolivia
2006-09-11 00:00:00

Technical Information

Other document
2006-09-11 00:00:00 | Brazilian Ministry of Environment
2006-07-26 00:00:00

Technical Information

Other document
2006-07-26 00:00:00 | Brazilian Ministry of Environment
2005-05-31 00:00:00

Environmental Impact Report

Other document
2005-05-31 00:00:00 | IBAMA

Rio Madeira dam project, Brazil

2006-10-25
March against the project Indigenous people in event to public discuss the project Public event to discuss the project with affect communities Public event to discuss the project with affect communities Indigenous woman making a speech March against the project Protest on the river The Rio Madeira river
Pictures of protests by indigenous communities against the Rio Madeira dam project in Rondônia, Brazil.

2014 Floods in the Madeira River

2014-03-11 09:26:56

Wrong Climate for Damming Rivers

2012-01-02 14:55:44

GDF Suez nominated for Public Eye Awards 2010 Davos

2010-04-13 14:36:36

The Madeira River: Life Before the Dams

The Madeira River: Life Before the Dams tells the story of the people of Brazil and Bolivia affected by the construction of the Santo Antonio and Jirau dams, part of the Madeira Hydroelectric Complex. The film was shot both in the dry and rainy season, in Amazon riverine communities in Brazil and Bolivia. It documents expectations, opinions, and fears of people, whose livelihood depends on the river, including indigenous communities.
2010-02-22 14:22:58

Rio Madeira vivo

Video showing the resistance against the construction of three new dams in the Rio Madeira river in Brazil.
2006-12-26 00:10:06

Interamerican Development Bank

Movimiento dos Atingidos por Barragens (MAB)

Rio Madeira Vivo

Friends of the Earth Brasil

Comissão Pastoral da Terra - Rondônia

Amazon Watch page about Rio Madeira Dam

Energy and Infrastructure in Latin America

Updates

2014

2014-02-20 00:00:00 | Floods in the Madeira

Floods in the madeira river are being linked to the Jirau and Santo António dams, in the madeira.

 

2010

2010-04-13 00:00:00 | Latest update

GDF Suez, the construction company partially owned by the French government and heavily involved in the construction of the Jirau hydroelectric dam, was nominated for the Public Eye Award 2010. After a head-to-head contest with farmaceutical firm Roche GDF Suez ended in the second place.

Independent experts analyzing official project studies reported that due to sediment accumulation the flooded area may cover more than twice the 529 km2 indicated in the EIA, affecting protected areas and a forest reserve in neighboring Bolivia, and that impacts on migratory fish species may lead to their extinction. The Madeira dam projects have been the subject of official protests by the Bolivian government, and the country’s Environment Directorate is now coordinating a process to analyze the EIA.

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