Amazon dam raises hopes for progress, fear of havoc

XINGU RIVER, Brazil, (Reuters) – Beptum Xikrin  contemplates the Bacaja River from his village of thatched-roof  huts, wondering how he will catch fish or take Brazil nuts to  market if a planned dam on the Amazon’s mighty Xingu River  will, as ecologists expect, all but dry up this tributary.

After nearly three decades of sometimes violent protests,  Beptum and 1,000 other indigenous people in this remote region  of the Brazilian Amazon have resigned themselves to the fact  that the world’s third-largest dam will be built in their  backyard.

“They decided to build it against our will; what can we  do?” said Beptum at a meeting of tribesmen, many with body  tattoos and large earlobe piercings.

A start date for construction of the Belo Monte dam has not  been set yet, but it is expected to come online in 2015.

Near the meeting tribesmen, a naked girl with a partially  shaven scalp plays with a broken doll in the dirt, while a  woman roasts manioc flour — a staple of the Brazilian diet —  over an open fire.

The apparent calm is likely to change when, further  downstream, trucks and bulldozers move more earth than was  shifted during the construction of the Panama Canal.

The building of the massive Belo Monte hydroelectric plant,  estimated to cost between $11 billion and $17 billion,  illustrates the dilemmas Brazil faces as it strives to make the  leap to developed-nation status.

Supporters say the dam, which will be built by a domestic  consortium led by state-owned power company Eletrobras, will  create jobs in a downtrodden region and help power Latin  America’s largest economy.

But critics say the race for economic prosperity also  brings social and environmental costs. The 6 kilometer-long  (3.75 miles) dam will displace 30,000 river dwellers, partially  dry up a 100-kilometer (62.5 mile) stretch of the Xingu, and  flood a 190-square-mile (500-sq-km) area three times the size  of Washington D.C.

Despite the warnings and intense international pressure  from the likes of Hollywood director James Cameron, President  Luiz Inacio Lula da Silva has vowed to push ahead.

Some analysts say he wants to showcase the project ahead of  October’s presidential election to benefit his chosen  candidate, Dilma Rousseff, who until recently headed the  government’s public works projects.

SOVEREIGNTY

Lula’s defence of the dam also reflects Brazil’s newfound  confidence and determination to exert control in the often  lawless Amazon region by developing the local economy.

“We want there to be an industry here, not only an  extraction of wood, iron ore, bauxite and aluminum,” Lula, who  grew up in poverty, said on a visit to the region last month.

In the late 1980s Brazil’s debt-ridden, young democracy was  forced to cancel the project under intense international  pressure, including a campaign by rock star Sting.

Today, Belo Monte is one of nine hydroelectric dams being  planned in the Amazon and part of the largest development  strategy for the region since the 1964-85 military dictatorship  plowed muddy roads through the world’s largest rain forest.    The hugely popular Lula has cracked down on illegal logging  and cattle ranching in the Amazon but more often has chosen to  create jobs than protect trees. Many locals fear they won’t  benefit from Belo Monte. “It’s a terrible idea. The energy won’t stay here. It’ll  curtail our leisure and the jobs of many people,” said Antonio  Jose de Nascimento, 51, pointing to the Xingu from his fish  stand in Altamira, the region’s largest town. Across the street a “for sale” sign on a rickety, wood  shack on stilts reflects the despair of many residents in one  of Altamira’s several neighborhoods that will be flooded.  Promises of replacement housing are consolation to only a few. With the local population expected to double to 200,000 in  Altamira, already stretched public services could collapse  altogether and provoke social strife, the government  environment agency Ibama warned.  After its report, which also  said changing river levels would reduce biodiversity and cut  off outlying communities, two Ibama officials resigned in  December under government pressure. While many now accept the dam as inevitable, others say  they will continue to fight it. “The legal battle is just beginning. The project is  unconstitutional, it’s rotten to the core,” said Erwin  Krautler, the Roman Catholic Bishop of Altamira. He says Lula, who pulled millions out of poverty with a mix  of market-friendly policies and social welfare, has become  hostage to the interests of big business. Public prosecutors and others claim environmental impact  studies are flawed and that the dam is unconstitutional because  the indigenous people were not formally consulted. “It’s unacceptable and illegal to build a dam this size  without knowing the full environmental impact or consulting the  indigenous people,” says Clarice Cohn, an anthropologist at the  University of Sao Carlos in Sao Paulo state. Authorities say the dam won’t sit on indigenous lands.

Not everyone in Altamira disagrees with the dam. Waldir de  Souza, a 42-year-old electrician, says it would create jobs and  prod authorities to pave the road to Altamira, helping to  reduce the cost of goods.

“We are very forgotten here. Everything is expensive.” To compensate for the impact on nearby communities, the  consortium is required to invest in housing, health and  education. “This region won the lottery with the construction of the  dam, it will leap from poverty to development,” said Mauricio  Tolmasquim, head of the government’s Energy Research Company. But locals warn corruption may undermine such gains.

“Oligarchies rule here, corruption goes unpunished. The  shower of money will go down the drain,” said Bishop Krautler.

Back in their village, the Xikrin debate the pros and cons  of development. They have a public phone, whose satellite dish  sticks out like a sore thumb among palm trees, scrawny dogs and  discarded soda bottles. But few have the phone cards needed to  use it.

Unlike their self-sufficient forefathers, most native  Indians need to sell farm and forest produce in town to buy  tools, medicine and also consumer products.

“I want a refrigerator to store my fish; a TV would be nice  too,” says 34-year-old Princore Xikrin, with his six children  crammed into a windowless, dirt-floor hut.

Most of the Xikrin also want a road to get to town more  cheaply but are unaware of the prostitution, alcoholism and  land conflicts that roads have brought Indians elsewhere.

“We want only the good things from the white man. We don’t  want drugs or other problems,” said an elder Xikrin, recalling  that life was easier in the jungle when he was a kid.