Brazil court halts massive Amazon dam construction

BRASILIA,  (Reuters) – A Brazilian judge has  suspended plans for construction of the massive Belo Monte  hydroelectric plant in the Amazon rain forest, citing  environmental concerns, a federal court said yesterday.

Belo Monte, which would be the world’s third-largest  hydroelectric dam, has sparked protests in Brazil and abroad  over its impact on the environment and native Indian tribes in  the region.

Federal judge Ronaldo Desterro in the northern Para state  said environmental requirements to build the dam had not been  met. Those measures include contingency plans to assure  transportation along rivers, where the dam is expected to  reduce the water level sharply.

The court also prohibited the national development bank,  BNDES, from financing the project.

If upheld, the ruling could spell a serious setback to  President Dilma Rousseff’s plans for large investment in  infrastructure projects.

Public works projects in Brazil often face legal  challenges, but many court injunctions are overturned  quickly.