Maputo March 25-26, 2009. HYDROPOWER: A Key Tool for Sustainable Development CONTENT 1. Mphanda Nkuwa Hydropower Project 2. Sustainability in Hydropower.

Maputo March 25-26, 2009

HYDROPOWER: A Key Tool for Sustainable Development

CONTENT1. Mphanda Nkuwa Hydropower Project2. Sustainability in Hydropower Projects3. SRE Approach for Mphanda Nkuwa Hydropower Project4. Corporate Social Responsability. Experiences5. Environmental and Social Programs related with

Hydropower Projects. Experiences

MPHANDA NKUWA HYDROPOWER PROJECT

Location: Zambeze River, 60 Km downstream of Cahora Bassa dam (Mozambique)

Run-of-river dam (90 m high)

Capacity:1500 MW

Reservoir: 100 km2

Cost: 2 Billion $US

MPHANDA NKUWA HYDROPOWER PROJECT

Contribution for generation supply in Mozambique. Contribution for poverty alleviation in Mozambique. Contribution with electricity for the Southern Africa Power Pool, with a

positive impact for the economies of the SADC region. Clean energy in a region based on coal-generated electricity, where thermal

plants are one of the main sources of CO2

Benefits from Tax and Royalties for the Government of Mozambique; Increase in the Mozambique’s GDP; About 4,000 of direct employment and training opportunities for local

employees and contractors

HYDROPOWER: A Key Tool for Sustainable Development

Hydropower projects can make a significant contribution to sustainable development, when

they are developed and operated in an economically viable, environmentally sound and

socially responsible manner

HYDROPOWER: A Key Tool for Sustainable Development

PILARS OF SUSTAINABLE DEVELOPMENT

ECONOMIC

DEVELOPMENT

ENVIRONMENTAL

CAUTION

SOCIAL

JUSTICE

Meeting needs of present without compromising the ability of future generations to meet their own needs

HYDROPOWER: A Key Tool for Sustainable Development

Economic Development

Sustaining multiple uses of waterFostering regional & industrial developmentAdvanced technology, low operating costs, long

plant lifeRevenue from power sales/export

HYDROPOWER: A Key Tool for Sustainable Development

Environmental Caution

• Renewable resource• Supporting biodiversity by providing new habitats• Avoiding air pollution• Slowing down climate change• Reducing acid rain by offsetting other forms of

power generation (as coal thermal plants)

HYDROPOWER: A Key Tool for Sustainable Development

Social JusticeAlleviating poverty by encouraging economic

development and bringing water, power and light to those in need

Providing wider access to a resource that is not evenly distributed in time and space

Offsettig adverse climate impacts and preserving finite resources for future generations

Passing on an electricity source with long viability and low maintenance costs for the benefit of future generations

Environmental and Social Mozambican Legal Requirements

Equator Principles

IFC’s Environmental and Social Performance Standards

World Dams Comission recomendations

Experiences of CAMARGO CORRÊA Group

MPHANDA NKUWA HYDROPOWER PROJECT

MNKHP will be developed taking in consideration:

Full Environmental and Social Impact Assessment

Environmental Management Plan

Resettlement and Compensation Plan

Public Participation Process

Sustainable development projects for local communities

Clean Development Mecanism (CDM)

Independent review

MPHANDA NKUWA HYDROPOWER PROJECT

Participative Process involving representatives of local communities, government institutions and other stakeholders to identify and priorize sustainable development projects to be implemented in local communities

MPHANDA NKUWA HYDROPOWER PROJECT

Benefits for Local Communities

• Camargo Corrêa is one of the world leaders in the construction of Hydroelectric Power Plants

• The Company has built, alone or in association with other corporations, 26 Hydroelectric Power Plants corresponding to 37,500 MW of installed capacity (7% of the world’s constructed hydroelectric plants), including 2 out of the 5 biggest hydroelectric plants in existence on the planet.

Tucuri HydropowerItaipu Hydropower Ilha Solteira Hydropower Machadinho Hydropower

About CAMARGO CORRÊA

In 2006, the Company signed the “Sustainability Letter: The Innovation Challenge” formalizing the commitment of:

contributing to build a more just society,

integrating sustainability in the organization strategic map, business management and daily activities.

Corporate Social Responsability Experiences

Focus: Community development, through implementation of education and income generation programs, with priority for communities close to units

Base on Community Development Commitees with representatives of government, NGOs, local leaders and professionals from the Company through participative process defines priorities programs to be implemented

Corporate Social Responsability Experiences

“Together for the Ideal School Project”, comprising schools rehabilitation with the community, capacity-building (Campina Grande, Brazil)

Houses built by members of community, after training program (Sarapuí, Brazil)

Education and housing programs

Corporate Social Responsability Experiences

Income generation programs for communities

•Woman from the community selected to train other 80 women on use of fabric wastes (Aracajú, Brazil)

• Waste selecting company created for 11 families of waste scavangers• Camargo Correa provided equipment, capacity building in managment and training on health &environment • Salto Pilão Hydropower allowed to transport its construction recycling wastes for this plant

Corporate Social Responsability Experiences

Income generation programs for communities

Training on gardening and envionmental education (São Paulo, Brazil)

Training program in basic electricity for youth (Santa Rita, Brazil)

Corporate Social Responsability Experiences

Food Education Program in collaboration with CAMARGO CORREA, contributing for the Poverty Reduction Program

(Mozambique)

Truck with a kitchen is used to awarness on nutrition importance and demonstration of receipts with traditional ingredients

Corporate Social Responsability Experiences

Environmental and Social Management Programs in Hydropower Plants

• Waste management • Erosion control program• Rehabilitation of affected areas• Monitoring of sediments and seismic• Establishment of a protected area around the reservoir• Rescue of flora and fauna

Environmental and Social Management Programs in Hydropower Plants

•Monitoring of ictiofauna and fisheries• Environmental Awareness campaigns• Resettlement programs• Support development of agriculture and livestock activities for local communities• Support development of tourism activities around reservoir

NUCLEUS APPROACH“created nucleus irradiate biodiversity for

the surrounding area”

TRANSPOSITION OF TREE BRANCHES

HYDROSEEDING

GRASS SEEDING

SOIL TRANSPOSITION

Fonte: Reis et al., 2003

Fonte: Reis et al., 2003

“soil coverage, soil reestruturation and development of a radicular system for

erosion control”

SOIL TRANSPOSITION

“deposition of a thin soil layer on the areas to be rehabilitated, using its seeds bank and all soil

associated fauna”

TRANSPOSITION OF TREE BRANCHES

“dry or green branches, used to create resting, shelter and foraging areas for birds

and bats”

ARTIFICIAL PERCHES“dry or green branches, used to

create resting, shelter and foraging areas for birds and bats”

“different types of plants (grass, bush and trees)”

“seeds colection

during whole year”

GENETIC DIVERSITYPRODUCTION OF SEEDLING PLANTS ENSURING

GENETIC VARIABILITY

THANKSEgídeo Leite

Madalena Dray