Ibama awards Estreito hydro project license

Brazil's environmental protection agency Ibama awarded Thursday a preliminary environmental license for the 2.4bn-real (US$941mn), 1,087MW Estreito hydroelectric project in the northern state of Tocantins, an Ibama spokesperson told BNamericas. The project has been held up in recent months after Ibama asked its sponsor Ceste to redo public hearings in the region that will be affected by the plant and its 550 sq. km. reservoir. Ceste was awarded the project concession at the beginning of 2002 and public hearings were held that year, but construction has not yet started because Ibama identified problems in the environmental impact studies (EIS) carried out by Brazilian consulting firm CNEC. Public hearings were held again in January and February this year to get the local population's view of changes to the EIS, Ibama said. Ibama completed this week its final analysis of the EIS needed to award a preliminary license, which details the necessary environmental protection activities. After meeting Ibama's requirements, Ceste will need to obtain an installation license before starting construction works. Ceste is in a hurry because it needs to start construction before the end of the dry season in June to allow start of commercial operations in September 2008. Power generator Tractebel Energía and mining conglomerate CVRD each own 30% of Ceste, while the local branch of US aluminum maker Alcoa has 19.1%, resources house BHP Billiton has 16.5% and Brazilian engineering firm Camargo Corrêa has 4.4%.