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Running Head: Monte Belo Dam

The Monte Belo Dam Controversy: A Literature Review

Babak Tavakoli-Nejad
University of Texas at El Paso

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Abstract
Brazil is in the process of building a dam that threatens riverside people, especially the
indigenous. The government is being influenced by transnational corporations, especially Vale.
Vale will be part of the minority that will benefit from the dam because it will use subsidized
hydroelectric energy to power its steel production. This review will examine the different
economic effects that this dam will bring to Brazil, the corporations, and the citizens. It will
examine the environmental effects of the dam to the surrounding area and on a global scale to
discern if the dam is really green energy. It will observe the methods that the indigenous tribes of
the Xingu River use to protest the dam. This review will look at the rights violated and conflict
between a corporate settler-state and the indigenous resistance. This review examines an
interview with UTEP professor Debora Zamorano, an advanced Portuguese instructor and
Brazilian national who reveals the Brazilian perspective on the Monte Belo dam.

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The Monte Belo Dam Controversy: A Literature Review

Hydroelectric dams utilize natural river currents to rotate turbines that generate electricity
as seen in the diagram below. Dams create one fifth of the worlds energy but they are also used
to better regulate floods, provide water to irrigate crops, and in some cases provide safe drinking
water (Kaiser, 2014). The worlds most powerful rivers are located in Brazil. So it would make
sense for Brazil to consider hydroelectric Dams to power their country. Brazil already has access
to the Itaipu, worlds 2nd biggest dam. The Itaipu is located on the border between Brazil and
Paraguay. Itaipu supplies 25% of Brazils energy and 78% of Paraguays because the dam
belongs to both countries. (Engineering News-Record, 2004).
Now Brazil is constructing the Monte Belo, a new dam that the country wont have to
share. Belo Monte Dam is currently the largest dam project under consideration anywhere on
the planet and when completed the Monte Belo will be the worlds 3rd largest dam. Belo
Monte is highly complex the project includes two dams, one artificial canal, two reservoirs
(one on dry land), and an extensive system of dikes, some big enough to qualify themselves as
large dams. (International Rivers). The dam also has political complications that are drawing
international attention. These complications will be examined in this research report by
answering the following questions:
What is the Monte Belo dam controversy?
What are the economic effects of the dam?
What are the environmental effects of the dam?
How are the opposing
campaign?

Source: Heffner, Heather. Hydroelectric

Dam. n.d. Auburn University. 2014. Web.
11 December 2015

sides handling their

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It is also important to understand the Brazilian perspective. For that reason this Report
includes an interview with UTEP professor Debora Zamorano. She emigrated from Brazil and
still has family members living in So Paulo. Zamorano identifies as a Brazilian national, and
says she also understands the indigenous cause when it comes to the Monte Belo dam
(Zamorano, 2015).
The Monte Belo project is divided between advocates on one side, and those who object
its construction on the other. This report sets out to understand the motives of each opposing side
and the potential effects of their intentions, if we are to justify their objectives.
What is the Monte Belo dam controversy?
The Monte Belo dam is to be built on the 17,000 mile long Xingu River. The flooding
and redirection of water would cause forced displacement of 20,000 40,000 people, and grave
direct impacts to the land and livelihood of 1,000 indigenous people and thousands of riverine
and urban families with indirect impacts on a further 24,000 people from 24 different ethnic
groups (Amazon Watch, 2014). The tribespeople have lived along the river for thousands of
years and have cultural ties to the land and the river. Tribe leader Jos Carlos Arara met with the
Brazilian president in 2009 to voice his concerns:
Our ancestors are there inside this land, our blood is inside the land, and we have
to pass on this land with the story of our ancestors to our children. We dont want
to fight, but we are ready to fight for our land if we are threatened. We want to
live on our land in peace with all that we have there (International Rivers, 2012).
That same year the environmental impact assessment (EIA) found that the drying
of the river downstream from the dam would decimate the fish population key to

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indigenous diet, eliminate the only transportation for riverside peoples, lower drinking
water quality, destroy local agriculture production, and would proliferate waterborne
diseases, like malaria, in stagnant pools of water (International Rivers, 2012).
The Monte Belo is said to have an 11,233 megawatt installed capacity but during
Brazils 4-6 month dry period the dam will generate as little as 1000 megawatts during the
dry season, making it the most inefcient hydroelectric dam in history (Lawson, 2014).
Many advocates for the dam argue that the dam cant be abandoned because it is already
under construction. It is important to note that in similar situations dams have been
deconstructed. Construction of the La Parota dam in Mexico, for example, was formally
cancelled in August 2012 after a decade of resistance (Lawson, 2014).
What are the economic effects of the dam?
To understand the economic effects of the Monte Belo project we need to understand the
underlying flow of money, who the major players are, and why they have an interest in this dam.
Vale is a mining and steel production company that owns the worlds largest iron mines in
Carajs Brazil, making them the worlds largest iron ore producer. They are a transnational
corporation that has assets in 24 countries, but their head offices and major operations are located
in Brazil (Vale, 2015). In 2006 Vale exported 90% of Brazils iron ore and became the worlds
second largest mining company. Vales iron mine has a potential $800 billion USD contribution
to Brazils economy through its proven iron reserves that holds 7.2 billion tons of high quality
iron ore (Lawson, 2014). These assets grant enormous influence over Brazilian politics because
Vale represents a big part of Brazils GDP.

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According to Helle Lawson, an expert environmental justice researcher and associate of

the Human Rights Consortium, Vale is the leading beneficiary of the Monte Belo dam. The
motivation for Vales involvement in the consortium is cheap electricity. Vales business strategy
is very clearly focused on returning to steelmaking, which is particularly energy intensive,
requiring large amounts of electricity to power furnaces in its production (Lawson, 2014). Vale
currently operates nine hydropower stations in Brazil and has purchased a 9% stake on the
Monte Belo dam and in return The company will be able to buy energy on the free market at
subsidized prices (Lawson, 2014). This is a wise investment because Vale plans to expand its
Amazon operation, increasing its output from 100 million to 130 million tons of iron ore, and to
do so requires a large amount of electricity (Lawson, 2014).
Vale invested 9% in the Monte Belo but it is Brazilians who will bear the biggest
monetary cost of the dam. The Brazilian government plans to bankroll up to 80% of Belo
Monte using mostly public pension funds to provide cheap credit through the country's
development bank BNDES (Amazon Watch, 2012). Essentially most of the dam will be funded
through public pensions and Brazilian tax revenue. During the Interview, Zamorano explained
that she, as a Brazilian Taxpayer, feels that this is unfair and the government should find another
way (Zamorano, 2015). The 9% purchase by Vale is disingenuous because it was in fact backed
by a loan from the BNDES. . .Vale is well subsidized by the national development bank for its
private prot-making operations: in 2008 it received R$7.3 billion Brazilian reais from BNDES,
the largest loan it has ever offered to a private company(Lawson, 2014).
Lawson is confident that Vale will have first access to electricity because they are a high
value private investor. The government insists that the dam is required for Brazils
development and will provide electricity to 23 million homes, but it is quite clear from a

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number of reports, including one from The Economist, that the largest consumer of energy
generated by Belo Monte would be the industrial She goes on to say, it is likely that the
scheme will serve Vales electricity needs rst, and there will be little left over for the people of
Brazil (Lawson, 2014). Lawson believes there is enough evidence to state that Vale is exploiting
Brazil to make profit. She argues that while the Monte Belo dam is economically favorable to
some members of the government and corporations, it will be economically damaging to the vast
majority of Brazilians.
Brazilians are not getting the deal originally proposed. The government first said the
project will cost more than US$8 billion, including interest during construction, but industry
analysts are saying that due to the difficulties in building a project of this size in the Amazon, its
cost could easily exceed $17 billion. International Rivers went on to say, Given the projects
complexity, not to mention the additional costs of constructing the projects transmission lines,
even this amount could be an underestimate. (International rivers, 2012). This prediction made
by International Rivers in 2012 was correct. 2 years later Lawson reports that the cost of the dam
was ballooning to over US$18 billion (Lawson, 2014). The original set price has more than
doubled and as time passes the price continues to rise. These cost values are untruthful because
they dont take into account the environmental and social costs of the Monte Belo dam.

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What are the environmental effects of the dam?

The Monte Belo dam creates green energy because water is a renewable resource unlike fossil
fuels. Eminent climate-change scientist Philip Fearnside argues that hydroelectric energy isnt
green energy because it does more damage to our atmosphere than burning fossil fuels. Fearnside
estimates that the Monte Belo dam will emit twice as many ozone destroying gasses, like carbon
dioxide and methane, than the dirtiest coal plants for an equal amount of energy (McCully,
2006). Dams trap sediments from flowing downstream. Not only does that harm the ecosystems
that depend on those sediments but the buildup of sediments releases toxins into the water that
escape into the atmosphere from the surface of the reservoir (Kaiser, 2014). The dam will flood
over 600 sq. km of carbon rich rainforest. The vast amount of carbon and organic matter rots
underwater, creating carbon dioxide, methane and, in at least some cases, the extremely potent
global warming gas nitrous oxide (McCully, 2006). The following diagram illustrates the
process.
It is well known that the
rainforests produce much of the
worlds oxygen and regulate global
carbon dioxide levels. The Monte
Belo will destroy over 1500 sq. km
of rainforest by both flooding
upstream and drying downstream
from the dam (Amazon Watch, 2012). Professor Zamorano says she is already starting to notice
the effects of climate change in Brazil. She says that maximum temperatures are up 10 degrees
Fahrenheit than before and that the humid winters are becoming dry. Zamorano explains that

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Brazil has been in an 80 year drought and that her family members have rationed access to water
(Zamorano, 2015). This shortage of water will affect the Monte Belo dam.
On top of Brazils record breaking drought, the region has a natural dry season that can
last almost half of the year. The government is aware that Belo Monte's seasonal inefficiency
can only be managed by creating more dam reservoirs upstream (International Rivers, 2012).
This would add more destruction to the ecosystem. The Monte Belo dam would eliminate most
aquatic and many non-aquatic animals
that depend on the river. This would

Carbon Budget Project, Carbon Budget in Funeras

Hydroelectric Reservoirs. n.d. Carbon Budget Project.
Web. 11 December 2015

affect biodiversity and especially threaten endangered species and species that are unique to the
river like the white-cheek spider monkey (Amazon Watch, 2012). The dam claims to be green
but evidence shows that it will potentially emit huge amounts of greenhouse gases, destroy a
large area of rainforest, and eradicate life in a region of the world that is the most biodiverse.
How are both sides handling their campaign?
The Monte Belo dam had an immediate backlash when it was first proposed to the
Brazilian tribespeople in 1989. The first eruption between the indigenous and the energy
companies happened when 300 tribespeople met with a group of engineers to discuss the
proposed dam. Tribe leader Tura held her machete to the face of dam engineer Jos Antonio
Muniz Lopes. A famous photograph was taken as she rested the sharp tip on his cheek. Her threat
put a temporary halt to the dam project (Lawson, 2014). A similar incident happened in 2008
when again tribespeople met with engineers to discuss a new proposal of the dam. On this
occasion the engineer wasnt so lucky. Eletrobras engineer Paulo Fernando Rezende was called a
liar right before a group of tribesmen surrounded him. Moments later Rezende emerged
shirtless, with a deep, bloody gash on his shoulder he had suffered a machete wound

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(Clendenning, 2008). Indigenous leader Sheyla Juruna states, The government is not open to
dialogue, so we will fight with our bodies and souls to defend our lives and the life of our
river (Amazon watch, 2012). Many tribe leaders have openly declared war on the Brazilian
government claiming they will die for the river.
Violence is also a tactic used by those in favor of the dam. Many activists and tribe
leaders, including Ze Cluadio and Maria da Silva, have been murdered by contracted assassins
for speaking out against the dam and deforestation of Brazil (Anderson, 2011). Not only do the
energy companies use direct violence, they use structural violence, acting as an internal colonial
power.
According to Adam Jones, there is a form of internal colonialism occurring in
states like Brazil, where native peoples are marginalized both territorially and
socially. Their territories are coveted by an expanding frontier of state control,
prots ow from periphery to core; the environment is ravaged. The state
approves and encourages the expansion of its commercial and political power into
these peripheral regions, to benet domestic corporations to increase their share of
global commodities markets. The concept of internal colonialism. The
exploitation of land for mining and other forms of extraction with scant regard for
human rights and particularly the rights of indigenous peoples is highly
characteristic of settler-colony behavior (Lawson, 2014).
Lawson argues that the corporations are acting as a colonial force and the actions taken
by the energy companies are in fact violent and could even be extinction by internal
colonialism, or a slow industrial genocide, to borrow a term used by the First Nations
peoples ghting the ceaselessly destructive development of the Athabasca tar sands in

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Alberta, Canada (Lawson, 2014). Professor Zamorano feels that the violence faced by
the tribespeople is more terrible than the violence done to the energy corporations, but
says that neither side should resort to violence (Zamorano, 2015). This shows us insight
about how Brazilians feel towards the violent handling of the issue.
Activists have also taken the peaceful route. The Indigenous have staged 26
significant protests between 1989 and 2014. Some significant demonstrations include a
30 day occupation that paralyzed a construction site,
the blocking of roads and the blocking of rivers (with
a dam made of connected small fishing boats) to
halt the transportation of machinery, the occupation
government buildings,
and protests at

Source: Amazon Watch. The Xingu River

and Its People. Amazon watch. 2012.
Web. 11 December 2015.

international

summits and United Nations meetings (Amazon Watch, 2012).

The appeals made by activists to the UN were in regards to the ILO Convention
169 on Indigenous and Tribal Peoples of 1989 (ILO 169) and the 2007 United Nations
Draft Declaration on the Rights of Indigenous Peoples (UNDRIP) (Lawson, 2014). Both
of these international mechanisms, signed by Brazil, protect the rights of indigenous
people. The Brazilian government and energy corporations are in violation of both the
ILO and UNDRIP which, although are sophisticated steps forward, are still non-legally
binding Declarations (Lawson, 2014).
It is important to note the connection between transnational corporations (TNCs)
like Vale and the UN. One observation Elson notices particularly about the rst Rio
summit is that it marked the beginning of a new kind of partnership between the UN

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and corporations (Lawson, 2014). Lawson argues that this relationship is in part because
TNCs helped to nance the summit (Lawson, 2014). This gave corporations special
privileges. For example, The International Chamber of Commerce and its members,
many of whom are TNCs, urged that the Agenda 21 document for sustainable
development (to be agreed at the summit) contained no references to regulating
corporations (Lawson, 2014).
Activists argue that the construction of the Monte Belo dam is unconstitutional.
Decree 788 in the Brazilian constitution requires consultations with affected peoples to
be allowed in Congress (Lawson, 2014). In 2012 the Brazilian Supreme Court found the
license granted to build the dam unconstitutional and voided it. 15 days later the decision
was overturned. Atossa Soltani, Executive Director of US-based NGO Amazon Watch,
said that the decision of 29 August was a failure of the judiciary to stand up to entrenched
interests and the power of a politically motivated executive branch that wants the Belo
Monte dam to move forward at all costs (Lawson, 2014). This coincides with professor
Zamoranos claim that the fault in the injustices done by the Monte Belo dam, rests on
bad administration and government corruption (Zamorano, 2015).
The legality of the dam is still in question. In total there have been 21 legal
disputes with regards to the Monte Belo dam. The project has been court ordered to stop
construction on 5 occasions, then later granted permissions to continue building (Amazon
Watch, 2015).

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Conclusion
This research report explains the Monte Belo dam controversy by informing on
the current situation as well as relevant history, analyzing the motives of opposing sides,
and going into depth with the dams economic, environmental and social effects. This
report reviews a number of credible sources, including academic journals and an experts
interview. It is important to note that this research uncovered conflicting data even within
Scholarly journals. Upon further investigation it was found that different statistics
belonged to different periods. Because this conflict started in 1975 and continues to
today, it is important to compare the data and use the more recent information, so all
sources are dated within the decade.

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Resources
Amazon Watch. The Xingu River and Its People. Amazon watch. 2012. Web. 11 December
2015.
Anderson, John Lee. Murder in the Amazon. TheNewYorker, 15 June 2011. Web. 11
December 2015
Carbon Budget Project, Carbon Budget in Funeras Hydroelectric Reservoirs. n.d. Carbon
Budget Project. Web. 11 December 2015.
Clendenning, Alan. Amazon Indians Attack Official Over Dam Project. National Geographic.
n.p. 2008. Web. 11 December 2015
Engineerin News-Record. Itaipu Dam. Article 2004. Construction Facts. Web. 11 December
2015
Heffner, Heather. Hydroelectric Dam. n.d. Auburn University. 2014. Web. 11 December 2015
International Rivers. Belo Monte Dam. International Rivers, 2012 Web. 11 December 2015.
Kaiser, Kristine. How Reservoirs make Greenhouse Gases. 2014. Ponoma. Web. 11 December
2015.
Lawson, Helle. Sustainable development for whose benefit? Brazil's economic power and
human rights violations in the Amazon and Mozambique. Scholarly journal
2014.
The International Journal of Human Rights. Web. 11 December 2015
McCully, Patrick. Reservoirs may Add to Global Warming. Baltimore Sun, 15 December
2006. Web. 11 December 2015
Vale. Vale Mining. 2015. Web. 11 December 2015
Zamorano, Debora. Personal Interview. 23 October 2015.