Company withdraws from hydroelectric megaproject in Peru's central Amazon

• Brazilian ODEBRECHT made official its decision out of consideration for the Ashaninka people’s request

• Project would flood up to 22 000 hectares of forests and cause the displacement of several local communities

Lima, Peru. Last Tuesday November 22, Tambo 40, one of the iconic projects planned within the framework of the Peru - Brazil energy agreement, was left aside by Odebrecht, the Brazilian company responsible for its execution, after informing the National Government of its intention to respect the will of local populations, who for months opposed the construction of a hydroelectric power station in the area.

In addition to the eventual displacement of thousands of people, the project entailed the flooding or deforestation of vast areas of forests, as well as the flow alteration of major rivers in the Peruvian Amazon, such as Tambo in the middle Ucayali River basin. It would have also meant the first incursion of hydroelectric projects in this region, which for several specialists, would be an error in energy planning and in the prospects for sustainable development in the Amazon.

“So far, there are no hydroelectric power plants on the lower Peruvian Amazon, unlike countries like Brazil, where social and environmental impacts of these projects have been – in many cases – serious and irreversible. Instead, our country has great alternative opportunities for power generation such as hydroelectric stations in the Andes, among others, which is the reason why the cost-benefit of altering rivers and destroying vast areas of primary forests do not seem beneficial”, said Juan Carlos Riveros, WWF Peru’s Conservation Science specialist.

In June 2010, the governments of Peru and Brazil signed an agreement for power generation and the export of surplus to Brazil. In this context, several hydroelectric projects in the Peruvian Amazon have been promoted despite the opposing technical opinion of specialists who affirm the lack of relevance of generating impacts on pristine areas of high value for conservation and to local populations in Peru, for export.

Among the priority projects is Tambo 40, a dam that would provide about 1300 MW, but that would possibly affect nearly 15 000 Ashaninka people, which has been formally withdrawn by Odebrecht, the originally intended executor. This decision has been welcomed by the Ashaninka people, who are waiting for similar actions to happen with other projects such as Tambo 60 and Pakitzapango, which are planned within their territories.

“While the increase in energy demand is expected, it is fundamental to consider that in order to meet this demand, the variables required need to be evaluated. This, especially in cases where not only the safety and lifestyles of indigenous and local populations, but above all, the integrity of fragile ecosystems such as the Peruvian Amazon which provide critical environmental services for the country and the world, are at stake” states Riveros. In that sense, “driving the adoption of technical criteria to determine the most adequate locations for these initiatives, reducing impacts to a minimum, and promoting optimal standards of intervention in the biological and social fields, are basic principles that have to be considered”, concludes the specialist.

Recently, WWF has worked hand-in-hand with local organizations to promote further discussion and understanding of this reality by companies, authorities and peoples involved at the national level. Also, within the framework of the Living Amazon Initiative, WWF has been promoting the adoption of technical and scientific criteria to determine the best options for intervention of megaprojects in the Amazon, in order to reduce impacts and contribute to its sustainability, which has been promoting the adoption of higher standards in planning of major investments in the region.