Govt. starts talks with suppliers for giant hydro plants

Brazil's government has started negotiations with a number of suppliers over plans to build two hydroelectric power plants, the 11,000MW Belo Monte project and the 12,500MW Rio Madeira project, according to Valor Economico. Total investments in the two projects, including construction of transmission lines, could be more than US$12bn. Through state holding company Eletrobras, the government has started talks with France's Alstom, Swiss-Swedish firm ABB, US' General Eletric and Germany's Voith Siemens, as well as Brazilian construction firms Camargo Correa and Andrade Gutierrez. The size of the projects means the government will need a number of suppliers: according to Voith Siemens vice-president Sergio Parada, the company can manufacture between four and six turbines a year at its plant in Sao Paulo state, while the Rio Madeira project alone will require more than 100 turbines. The Belo Monte project is currently the most advanced, and the government is reported to be considering keeping a 49% stake for Eletrobras subsidiaries Furnas, Chesf and Eletronorte, while handing over 51% to the private sector. Eletronorte is reported to have produced a study that would cut total capacity by 60% at Belo Monte, to reduce the environmental impact. However, suppliers are reported to be pushing for the full project to be built. Rio Madeira would continue to be led by the two developers to date, namely Furnas and Odebrecht.