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Lula’s Answer to Belo Monte’s Friendly Fire: We Can Do It Alone

A Kayapo Brazilian Indian Brazilian president Luiz Inácio Lula da Silva declared that the Belo Monte power plant will be built even if it means doing it without the private sector. Lula made his comment after being informed that Queiroz Galvão, the biggest construction in the winning consortium, Norte Energia, was threatening to pull out of the project.

The threat came right after the April 20 auction and was seen by many observers as jockeying by the construction firm to get a bigger piece of the action.

So, at the same time Lula commemorated his victory in the battle of judicial injunctions that made the auction on April 20 possible, he faced a little friendly fire.

“Nobody is being forced to do anything. Whoever wanted to participate in the auction did so, and now that it is over, whoever wants out can leave. There is no locked door here. In fact, there are many doors.

“Somebody wants in, no problem. Somebody wants out, no problem. The only thing I want to make clear is that the Brazilian state, acting as a public company, will do this, alone, if necessary,” said the president.

Lula pointed out that the Belo Monte discussion has been going on for three decades. Past administrations have been criticized for not building the dam.

It was such a complicated process, so many arguments, so many lawsuits, that in the end it turned out to be one of the most democratic processes possible, Lula explained.

“In a democratic manner we legalized the Belo Monte auction. We had to overturn so many injunctions. And now they say the price is too low. All this, I think, is fantastic. Why did we have the auction? So the best offer could win and the price of the electricity will be the bid price that won the auction. That’s all there is to it,” declared Lula.

ABr

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  • teodoro

    USA in “Soft War” against “independent” Brazil!
    Belo Monte is the battle for Brazil in the “Soft War” of the USA against Brazil as an “independent” nation that no longer has to ask for permission from Washington. Brazili is now a major competitor in agricultural products and as a newly established geopolitical pole and as a major economic partner of China snf now the USA will use a variety of operations to sabotage the economic development of Brazil. The U.S. NGOs are the major weapon who are creating a global hysteria against Brazil and other nations of AMAZONIA. The U.S. NGOs are financed and directed by “Foundations” with links to the CIA and the “Neocon Latin Hands” in cooperation with Britain and the Vatican (Krautler der Austrian bishop at Xingu went to talk to the Bavarian at the Vatican on April 16 against Belo Monte). The Brazilians are aware of all of that, and both for economic development as well as a definite statement: BELO MONTE WILL BE CONSTRUCTED. U.S. NGOs should concentrate on the oil disaster in the Gulf of Mexico and on the rights of the over 1000 Native American nations and bands that still have been denied “recognition” from the U.S. government! As for the Austrian bishop Krautler at Xingu – the catholic bishop Elmar Fischer in his Austrian home town, Feldkirch-Koblach ist under investigation for criminal violence against boys (see: “profil nachrichten magazine” series by Emil Gobi).

  • Lloyd Cata

    Just Tell The Truth, And Share The Money…All Else Is Just Greed
    [b]”Somebody wants in, no problem. Somebody wants out, no problem. The only thing I want to make clear is that the Brazilian state, acting as a public company, will do this, alone, if necessary,” said the president.[/b]

    If you do the research you will find this is almost the same words that US Secretary of Defense Rumsfeld stated as to the War in Iraq. Anyone remember how he boasted of the US ‘going it alone’? “The Brazilian state, acting as a public company”, what an oxymoron that we know doesn’t even work in the United States, i.e. the US Post Office, AMTRAK, and Fannie/Freddie.
    No…What Mr. Lula meant to say was, “Brazil(i.e. me and my friends) are going to set up a ‘private’ consortium with the Brazilian treasury as the piggy bank”. There are four areas that are primary in his calculations;
    1) a $20B pot of gold, as the primary investment, plus overruns and delays.
    2) a engine for jobs as token to his cadre in PT.
    3) a spur to opening up the entire Amazon and the corridor for the trans-oceanic highway.
    4) a energy source for export to Venezuela, which is hungry for additional electric power. Belo Monte just the latest and largest of a string of hydro-electric projects.

    Unquestionably the ‘first’ $20B investment is not a problem. As a creator of jobs, it is justifiable as a public works project in support of Brazil’s unions and engineers.
    It is the third calculation which exposes the project to public and international scorn. As a naked land grab by the Brazilian state against the interests of the Indigenous Peoples, the Amazon ecology, and Brazil’s lauded ‘green’ economy. This exposes the agenda and gives the lie of Brazil protecting the Amazon region. It is a bigger lie than the fiction of Fomme Zero. The world quickly forgot Lula’s populist promises and are now only exposing the disaster of his promises to the poorest, just as he is willing to break Brazil’s promises to the Indigenous Peoples. The real question of energy for Brazil and the region lies in new technologies, not the 18th century solutions of the past, but as one Brazilian senator comments, “Brazil Is a Prisoner of Now with No Consideration for Tomorrow”.

    [b]In a democratic manner we legalized the Belo Monte auction. We had to overturn so many injunctions. And now they say the price is too low. All this, I think, is fantastic. Why did we have the auction? So the best offer could win and the price of the electricity will be the bid price that won the auction. That’s all there is to it,” declared Lula[/b]

    No sir, that is not all there is to it! You know very well that the electricity will have 2-tier pricing, with corporate customers and regional customers will contract for the electricity at the ‘stated price'($50/MWh) and the ‘public’ will eventually have to pay for any additional cost of that energy. Those corporate and regional companies will have ‘first place’ in the distribution of the energy, and the public will have to pick up the tab for any increased cost exposure. In fact, during times of low power, the public may experience the same disturbance in electricity now experienced by Venezuela. During a time of ‘climate change’, why is Mr. Lula betting on the weather?

  • gringo

    What Hubris!
    What shameful hubris! The reason everyone is bailing is because they are becoming aware of how disastrous this project is on every front. Journalists in Brazil, follow the money, find out why Lula is so hell bent on this project.

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