Belo Monte dam corruption and environmental licensing distortion
Risk Mechanism
Corruption and undue influence distorted project justification, environmental licensing, and the treatment of environmental and community impacts, allowing the dam to advance despite serious environmental and indigenous-community risks.
Case Summary
Transparency International reported that corruption influenced the decision to proceed with Belo Monte and the award of related contracts, while environmental and community impacts were not properly weighed in the approval process.
Risk Lesson
This case illustrates how corruption and political pressure can distort project justification, environmental licensing, and impact assessment, enabling a project to proceed despite significant environmental and community impacts. It highlights warning signs such as approvals granted before environmental impact findings are addressed, technical assessments aligned with a predetermined outcome, and weak institutional separation between political sponsorship and technical review.
Reference
Transparency International. (2020). Grand corruption and the SDGs: Brazil - Belo Monte and the devastating impact of corruption in the Amazon. Available from: https://knowledgehub.transparencycdn.org/kproducts/Grand-Corruption-and-the-SDGs_Brazil_FINAL.pdf