Amazon Dam Expansion Imperiled by New Condition, Valor Reports

The expansion of Brazil’s Santo Antonio hydroelectric dam in the Amazon region may be canceled after regulators said part of the extra energy would have to be transferred to a neighboring project, Valor Economico said, citing a document filed to the country’s Energy Ministry.

The group responsible for the 1.5 billion-real ($670 million) expansion, led by construction company Odebrecht SA and a unit of state-run utility Centrais Eletricas Brasileiras SA (ELET3), notified the ministry it may scrap the plan because of the rules, the Sao Paulo-based newspaper said.

Santo Antonio would have to hand over part of the extra power because the plan would hinder the potential expansion of the nearby Jirau hydroelectric project, according to a ruling from electricity regulator Aneel, Valor said.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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