The controversial new 11,000 MW hydroelectric dam is set to be built here, along the border of the Xingu river, 140 Km from Anapu city in the Amazon rain forest, northern Brazil. —Photo by AFP

BRASILIA Environmentalists, indigenous groups and British rock star Sting have denounced a government plan to build the worlds third largest hydroelectric dam in the Amazon river basin, which they claim will devastate the region, AFP reported.

The government of President Luiz Inacio Lula da Silva on Monday approved the 11 billion dollar Belo Monte project on the Xingu river that will flood 500 square kilometers and supply 11 percent of Brazils electricity.

Detractors say the dam in northern Para state will trigger droughts along a 100 kilometer stretch of the Xingu, displace thousands of indigenous people, attract an army of job-seekers, and accelerate the deforestation and destruction of the rain forest.

Environment Minister Carlos Minc told reporters Monday that the dam project has been issued "the most demanding environmental license in history," including 800 million dollars to mitigate environmental damage and protect indigenous areas.

The projects construction contract will go up bidding in April.

If completed, Belo Monte would become Brazils second-largest hydroelectric dam behind Itaipu and the worlds third largest behind Chinas Three Gorges dam.

"This project only benefits companies... it will generate methane gas that will change the climate and displace 30,000 people," Xingu Vivo Movements Antonia Melo told AFP.

The movement encompasses 150 indigenous and social groups in Brazil.

Xingu Roman Catholic Bishop Erwin Krautler, the projects strongest opponent, said the dam would be extremely harmful to both the delicate Amazon environment and the people it harbors.

"The project completely underestimates the consequences which will be irreversible. Lula promised to consult the (local) population, but there never was any talk," he told reporters.

Para state Attorney General Ubiratan Gazetta told AFP the project will need massive digging work similar to the Panama Canal that will bring in 85,000 workers and double the current population in the region.

When it was still on the drawing board last year, the Belo Monte project was denounce by Sting during a concert in Sao Paulo.

The singer-composer invited Brazils legendary indigenous leader Raoni on the stage to join in criticizing the hydroelectric plan.

Energy expert Adriano Pires said Belo Monte will help Brazil cope with a five percent rise in energy needs per year.

"In Germany," he said, "10 percent of (electric) energy comes from renewable sources, while in Brazil hydroelectric plants supply 90 percent of its electricity."

"We cant give up now, and thats why Belo Monte is so important."

Brazil is also building two other hydroelectric plants on the Amazons Madeira River.

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