Saturday, December 6, 2008

Electric Power - Brazil - Court revokes Jirau injunction, work resumes

Brazil's federal court in Brasília state has overturned the injunction against the 3.3GW Jirau hydro project's installation license, a spokesperson from the project consortium Enersus told BNamericas.


Judge Jirair Aram Meguerian argued there was no risk to plant construction since all conditions imposed by environmental regulator Ibama have been adhered to.

The third district court in Rondônia state on December 3 denied Ibama's first request to reverse the ruling.

Enersus won the right to build and operate the plant in May and received Ibama's installation license last month.

"The timeline wasn't altered. We resumed work this morning and Jirau is still due to start operations in 2012," according to the spokesperson. The official deadline to start operations is 2013.

The consortium on November 25 stopped work on Jirau's building site and watertight chamber after receiving the notification from Ibama.

"So far we have spent more time on injunctions than actual work," the spokesperson said.

Enersus plan to speed up work to take advantage of dry weather.

Multinational energy group GDF Suez has a 50.1% stake in Enersus and engineering firm Camargo Corrêa holds 9.9%. Federal power holding company Eletrobrás' (NYSE: EBR) subsidiaries Eletrosul and Chesf each have 20%.

The FBOMS NGO sought the injunction.



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