VZCZCXYZ0022
RR RUEHWEB

DE RUEHLP #0652/01 0671132
ZNR UUUUU ZZH
R 081132Z MAR 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 2762
INFO RUEHAC/AMEMBASSY ASUNCION 6611
RUEHBO/AMEMBASSY BOGOTA 3933
RUEHBR/AMEMBASSY BRASILIA 7821
RUEHBU/AMEMBASSY BUENOS AIRES 5069
RUEHCV/AMEMBASSY CARACAS 2301
RUEHPE/AMEMBASSY LIMA 2410
RUEHMD/AMEMBASSY MADRID 3363
RUEHMN/AMEMBASSY MONTEVIDEO 4466
RUEHQT/AMEMBASSY QUITO 4941
RUEHSJ/AMEMBASSY SAN JOSE 1615
RUEHSG/AMEMBASSY SANTIAGO 9529
RUEHUB/USINT HAVANA 0197
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RUMIAAA/USCINCSO MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS LA PAZ 000652 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/AND LPETRONI 
BRASILIA FOR JSTORY 
SAN JOSE FOR BLINK 
USAID/LAC FOR JBISSON 
USAID/EGAT FOR DMULLER AND CELRON 
USAID/BOGOTA FOR BBAYLE 
COMMERCE FOR JANGLIN 
 
E.O. 12958: N/A 
TAGS: ECON PGOV BL
SUBJECT: BOLIVIA FEARS IMPACT OF PROPOSED MADEIRA RIVER DAMS 
 
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SUMMARY 
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¶1. (U) Brazil's plans to build a giant two-dam complex on the 
Madeira River worry GOB officials and Bolivian environmental 
groups, which fear negative impacts on communities and 
ecosystems dependent on the river.  According to 
representatives of a La Paz-based green group, the dams could 
disrupt fishing and increase the frequency and severity of 
floods.  GOB officials have raised the matter with their 
Brazilian counterparts, but progress remains slow.  End 
summary. 
 
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BACKGROUND 
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¶2. (U) Brazil's $9 billion proposal features a two-dam 
complex on the Madeira River, which forms a sixty-mile 
stretch of the two countries' border upstream of the proposed 
construction site and drains an area almost equal in size to 
France and Spain combined.  According to press reports, 
Brazilian officials view the dams' hydropower potential as a 
partial answer to rapidly increasing domestic energy needs; 
they note that the dams' combined generating capacity of 
6,450 megawatts would exceed that of all but one of Brazil's 
existing dams.  The Brazilian government reportedly hopes to 
award concessions for the complex early this year, to pave 
the way for construction to begin in mid-2007. 
 
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FAR-REACHING IMPACTS, LIMITED COOPERATION 
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¶3. (U) Brazilian officials assert that the dams will have 
little environmental impact, but the proposal worries GOB 
officials and Bolivian environmental groups, which fear 
negative impacts on communities and ecosystems dependent on 
the river.  According to representatives of the Bolivian 
Forum on the Environment, a La Paz-based green group, the 
dams could disrupt fishing and increase the frequency and 
severity of floods.  They point to several independent 
studies that predict harm to upstream-spawning fish and 
highlight potential changes in river sediment levels.  One of 
the Forum's specialists, Patricia Molina, told Econoff March 
7 that Bolivian communities above the dams could lose incomes 
derived from fishing; she also noted that sediment build-up 
could alter river flow and lead to heavy, continuous 
flooding, which could ruin agricultural areas and bring with 
it outbreaks of malaria and dengue fever. 
 
¶4. (U) GOB officials have raised the matter with their 
Brazilian counterparts, but progress remains slow.  In 
December 2006, Bolivia reportedly asked Brazil to honor a 
2002 bilateral agreement governing the use of rivers along 
the two countries' border; officials eventually agreed to 
establish a bilateral commission to gauge the dams' potential 
impact, but the commission has yet to meet, and press reports 
suggest that Brazilian officials have largely ignored 
Bolivian concerns. 
 
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COMMENT 
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¶5. (U) Despite seemingly valid worries about the dams' 
environmental impact, Forum representatives appear convinced 
the Brazilian government will push ahead with its proposal. 
They expect little from bilateral negotiations, largely 
because they believe Bolivia is in a weak position vis-a-vis 
Brazil's desire to act quickly to meet growing domestic 
energy needs.  They also note that this is an unusual 
situation, with few international precedents to provide 
guidance.  While groups like the Forum will continue to call 
attention to the issue, they may have little impact -- unless 
they form alliances with Brazilian institutions and outside 
organizations and create a united opposition.  End comment. 
GOLDBERG