Economics
The dam complex is expected to cost upwards of $16 billion and the transmission lines $2.5 billion. The project is being developed by the state-owned power company Eletronorte, and would be funded largely by the Brazilian Development Bank (BNDES). The project will also include substantial amounts of funding from Brazilian pension funds Petros, Previ, and Funcef. Private investors interested in the project include mining giants Alcoa and Vale, construction conglomerates Andrade Gutierrez, Votorantim, Grupo OAS, Queiroz Galvão, Odebrecht and Camargo Corrêa, and energy companies GDF Suez and Neoenergia.
In 2006, Conservation Strategy Fund (CSF) analyzed different cost-benefit scenarios for Belo Monte as an energy project, excluding environmental costs. Initial benefits appeared marginal. When simulating energy benefits using a modeling system it became obvious that Belo Monte would require additional upstream dams to provide water storage for dry season generation. CSF concluded that Belo Monte would not be sustainable without the proposed Altamira (Babaquara) dam which would have a reservoir more than 10 times the size of Belo Monte's, flood 30 times the area submerged by Belo Monte, indigenous territories of the Araweté/Igarapé Ipixuna, Koatinemo, Arara, Kararaô, and Cachoeira Seca do Irirí natives.
Due to the project's lack of economic viability and lack of interest from private investors, the government has had to rely on pension funds and lines of credit from BNDES that draw from the Workers' Assistance Fund, oriented towards paying the public debt, to finance the project; up to one-third of the project's official cost would be financed by incentives using public money.
Read more about this topic: Belo Monte Dam
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