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ENERGIA SUSTENTÁVEL DO BRASIL S.A ESBR

ENERGIA SUSTENTÁVEL DO BRASIL S.A ESBR. REDUCTION OF ENVIRONMENTAL IMPACTS OF THE AHE JIRAU NEW PROJECT. May 20, 2008. 1. ADVANTAGES OF THE AHE JIRAU NEW PROJECT.

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ENERGIA SUSTENTÁVEL DO BRASIL S.A ESBR

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  1. ENERGIA SUSTENTÁVEL DO BRASIL S.AESBR REDUCTION OF ENVIRONMENTAL IMPACTS OF THE AHE JIRAU NEW PROJECT May 20, 2008 1

  2. ADVANTAGES OF THE AHE JIRAU NEW PROJECT • The revised Project with the new location of the dam developed by ESBR presents lower environmental impacts in relation to the original Basic Project for the following reasons: • Lower excavation volume; • Maintenance of conditions of flow rates and physical / biotic flows during construction phase; • Arrangement of engineering structures in friendly conditions as to river biology; • Better conformity to the conditions provided for in the Previous License as to ichthyofauna, movement of sediments and revolving of mercury-contaminated bottom; • Favourable conditions of topography of alternative axis in relation to the original axis; • Possible anticipation of energy generation in view of appropriate distribution in the arrangement of the two power houses; • Hydraulic engineering arrangement with spillway in more favourable conditions for maintenance of physical / biotic flows of sediments, drift of eggs and passage of young fishes. 2

  3. ORIGINAL LOCATION OF JIRAU DAM 3

  4. NEW PROJECT – NEW DAM LOCATION Reduction of Environmental Impacts ALTERNATIVE AXIS Reduction of Excavation Volumes Costs Reduction Power Generation Anticipation The revised Project will have to be approved by ANEEL and IBAMA 4

  5. NEW PROJECT – ENGINEERING ARRANGEMENT 5

  6. NEW PROJECT – REDUCTION OF ENVIRONMENTAL IMPACTS • Reduction of excavation volumes: • Earth – 6.266.169 m³ • Rock – 43.636.876 m³ • Cofferdams – 1.353.830 m³ • Removal of Cofferdams – 530.313 m³ Such reductions are possible due to the natural widening of the river in the new chosen location • 19.5 times the volume of the Maracanã Stadium outer envelope • 537 times the volume of concrete used in the construction of Maracanã Stadium • 3.5 times the volume of concrete used in the construction of ITAIPU 6

  7. NEW PROJECT – REDUCTION OF ENVIRONMENTAL IMPACTS • Reduction of send-off volumes and cofferdams with lower movement of earth and rock as well as lower need of removal: The reduction of excavation and cofferdams present environmental advantages in the new axis as they consequently reduce the send-off volumes and borrow pit areas and aiming to increase the area of original forest surrounding the worksite 7

  8. NEW PROJECT – REDUCTION OF ENVIRONMENTAL IMPACTS • Maintenance of the river on its natural bed during two dry periods → Lower impact on the ichthyofauna To maintain the Madeira River diverted by the two natural river channels near the existing river island represents a more favourable environmental condition to the physical / biotic environment than the need of construction of an excavated channel in the original axis according to the Basic Project 8

  9. ENVIRONMENTAL BASIC PROJECT(PBA) Programs with shared performance area according to LP no.251/2007 • Flora Conservation Program • Fauna Conservation Program • Ichthyofauna Conservation Program • Public Health/Malaria Program • Hydrosedimentologic Monitoring Program Programs under joint responsibility according to LP no. 251/2007 • Support Program to Indigenous Communities • Programs related to the Archaeological, Prehistorical and Historical Heritage

  10. ENVIRONMENTAL BASIC PROJECT(PBA) • Environmental Program for Construction – PAC • Water Table Monitoring Program • Seismologic Monitoring Program • Climatologic Monitoring Program • Hydro-biogeochemical Monitoring Program • Mining Rights and Prospecting Activity Monitoring Program • Paleontological Heritage Preservation Program • Limnological Monitoring Program • Macrophytes Monitoring Program • Flooded Area Deforestation Program • Environmental Compensation Program • Deforestation and Wildlife Rescue Activities Follow-up Program • Social Communication and Environmental Education Program • Affected Population Relocation Program • Affected Infrastructure Recovery Program • Social Compensation Program • Reservoir Master Plan • Leisure and Tourism Activities Support Program • Clay pits and “Campinarana” Use Monitoring Program (LP) • Environmental Compensation Program • Considering the degree of impact on the “Campinarana” region (LP) Programs with exclusive application to the development of AHE Jirau.

  11. IMPLEMENTATION STRATEGY OF JIRAU PBA Programs regarded as shared ones due to their nature and scientific condition of implementation shall be compulsorily unified as required in the LP. Once identified the overlap of effects in the areas of the two reservoirs of the Madeira Complex will be treated as inserted in a common universe The relocation of the dam at 9.2 km downstream the original axis does not change the natural conditions of the physical / biotic environment taking into account the scientific need of sharing the various environmental studies within the same universe determined by IBAMA in the licensing process of the Madeira Complex Due to common studies and integrated dimension of environmental actions to be developed in both projects the breakdown of the previous issue of the worksite installation license and subsequent installation environmental license covering the reservoir is circumstantially justified 11

  12. ADDITIONAL INVESTMENTS IN THE SOCIAL AREA Aiming at reducing social impacts on the city of Porto Velho, ESBR has decided to increase its investments in the social area and build a new district in order to relocate the population of Mutum Paraná. • During the construction of Nova Mutum Paraná, we will implement: • Main and sewage treatment system • Water distribution system • Solid residues gathering and treatment • Urban drainage and paved streets • Green areas • Primary and Secondary schools • Health station • Leisure and business area 12

  13. ADDITIONAL INVESTMENTS IN THE SOCIAL AREA NOVA MUTUM PARANÁ • During the construction of Nova Mutum Paraná, we will implement: • 300 houses for the relocated population • 300 houses for technicians and engineers of the works → after the end of works, the houses shall be passed on to the public authorities • Infrastructure services (water – sewage – garbage) shall be passed on without cost to the Municipality of Porto Velho We will carry out the city's master plan including a long-term sustainability planning by means of attracting economic activities and job creation. 13

  14. ECONOMIC ADVANTAGES OF THE NEW PROJECT • Advantages: • A power house with 28 units and the second one with 16 units • Reduction in the number of cofferdams and environmental impacts • Anticipation in the concreting of the second power house • Increase of erection areas • Simultaneous erection and commissioning of both power houses • Power generation anticipation • Reduction in the tariff offered to consumer 14

  15. NEW PROJECT IMPLEMENTATION SCHEDULE • Beginning of civil works: April 2009 • First phase cofferdams: beginning May 2009; end July 2009 • Beginning of concreting for the power house and spillway: January 2010 • River diverted by lower openings: November 2010 • End of dam construction: January 2012 • Beginning of generation in base-case: March 2012 • Beginning of generation in optimistic case: December 2011 15

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