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UNCLAS SECTION 01 OF 16 BRASILIA 001185 
 
SIPDIS 
 
SIPDIS 
 
DEPT PASS USAID TO LAC/RSD, LAC/SAM, G/ENV, PPC/ENV 
TREASURY FOR USED IBRD AND IDB AND INTL/MDB 
USDA FOR FOREST SERVICE: LIZ MAHEW 
INTERIOR FOR DIR INT AFFAIRS: K WASHBURN 
INTERIOR FOR FWS: TOM RILEY 
INTERIOR FOR NPS: JONATHAN PUTNAM 
INTERIOR PASS USGS FOR INTERNATIONAL: J WEAVER 
JUSTICE FOR ENVIRONMENT AND NATURAL RESOURCES: JWEBB 
EPA FOR INTERNATIONAL: CAM HILL-MACON 
USDA FOR ARS/INTERNATIONAL RESEARCH: G FLANLEY 
NSF FOR INTERNATIONAL: HAROLD STOLBERG 
 
E.O. 12958: N/A 
TAGS: SENV EAGR EAID TBIO ECON SOCI XR BR
SUBJECT: SOUTH AMERICA ESTH NEWS, NUMBER 96 
 
BRASILIA 00001185  001.2 OF 016 
 
 
¶1.  The following is the ninety-sixth in a series of newsletters, 
published by the Brasilia Regional Environmental Hub, covering 
environment, science and technology, and health news in South 
America.  The information below was gathered from news sources from 
across the region, and the views expressed do not necessarily 
reflect those of the Hub office or our constituent posts. 
Addressees who would like to receive a user-friendly email version 
of this newsletter should contact Larissa Stoner at 
stonerla@state.gov.  The e-mail version also contains a calendar of 
upcoming ESTH events in the region.  NOTE: THE NEWSLETTER IS NOW 
ALSO AVAILABLE ON THE BRASILIA INTRANET PAGE, BY CLICKING ON THE 
'HUB' LINK. 
 
¶2. Table of Contents 
 
Agriculture 
--(3)Brazilian Agro-Power Heats Up 
 
Health 
--(4)Chile Opens First Public Stem Cell Bank 
 
Water Issues 
--(5)Amazon the World's Longest River, Claim Brazilian Scientists 
 
Forests 
--(6)Google to Harness Satellite Power for an Amazon Tribe 
--(7)Peru: Harmonizing USG Cooperation in Forestry Sector 
--(8)Brazilwood Gets Global Protection 
--(9)Green Gold: How a Brazilian Forest of Rubber Trees Is Bouncing 
Back 
 
Wildlife 
--(10)Chile Researchers Help Repopulate Llamas in Patagonia 
--(11)Suriname: Psychedelic Purple versus the Luster of Gold 
 
Science & Technology 
--(12)Venezuela Invigorates Gambian Science 
--(13)Brazil is out of ISS Project 
--(14)Foreigners have more patents than Nationals in Colombia 
--(15)Venezuelan R&D Investment Increases Fivefold 
 
Pollution 
 
BRASILIA 00001185  002.2 OF 016 
 
 
--(16)Pollution Crisis: Santiago's Air Worst of Last Eight Years 
--(17)Chile: Toxic Runoff Devastates Region VII River 
 
Climate Change 
--(18)World Bank Targets Forest Preservation-Climate Link 
--(19)Amazon State Adopts Brazil's First Global Warming Law 
 
Energy 
--(20)Brazil to Assist Paraguay in Exporting Biofuels 
--(21)Colombia and Cuba Sign Energy Cooperation Agreement 
--(22)Chile's Search for a Diversified Energy Matrix 
--(23)The Madeira Complex: International Banks to Fund Deforestation 
and Displacement 
 
General 
--(24)Guyana: Payment for Ecosystem Services Is Golden Opportunity, 
Seminar Told 
--(25)Brazil Bars USAID-Sponsored Project under Alleged Suspicion of 
NGO Actions in the Amazon 
--(26)Partnerships from Five Nations Receive 2007 Seed Awards for 
Innovation in Local Sustainable Development 
--(27)Brazil Federal Prosecutors Ask State to Suspend Alcoa's 
Bauxite Mining License 
 
 
----------- 
Agriculture 
----------- 
 
¶3. Brazilian Agro-Power Heats Up 
 
MAY 28, 2007 - Brazil, one of the world's agricultural superpowers, 
will see changes in the map of its emblematic crops, like coffee and 
soybeans, as a result of global climate change, says the latest 
research.  Even the most optimistic scenarios outlined in the 
studies by the Intergovernmental Panel on Climate Change (IPCC) 
predict that the thermometer will keep rising and will alter the 
rainfall patterns over much of South America.  Agro-meteorological 
researcher Moacir Antonio Berlato, from the agronomy department at 
the Federal University of Rio Grande do Sul, says that various 
studies have already shown that warming is affecting farming 
practices across the southeastern region of the South American 
 
BRASILIA 00001185  003.2 OF 016 
 
 
continent.  In the coming decades, grain crops will be increasingly 
difficult to grow in southern Brazil, while perennials like coffee 
will tend to prefer zones with more moderate temperatures, which 
means the center of production could shift to the south, according 
to an Embrapa (government's agricultural research agency) study. 
Excessive heat in the southern hemisphere summer will likely push 
production of crops like rice, beans, maize and soy towards Brazil's 
central-west. 
 
Source - Tierramerica 
 
------ 
Health 
------ 
 
¶4. Chile Opens First Public Stem Cell Bank 
 
MAY 30, 2007 - A new public stem cell bank that collects and freezes 
blood from umbilical cord donations will now be available for users 
of Chile's public healthcare system.  The new center, named the Bank 
of Life, is a joint operation run by the Catholic University of 
Chile and the Genomika Foundation.  Experts expect the new the 
center to greatly aid in the treatment of some of the sickest 
patients in the country.  Blood from umbilical cords contains stem 
cells that are frequently used to treat blood diseases, and the 
center's opening marks the first time in Chile that donated matter 
will be available to patients in the public health care system. 
Three private umbilical cord blood banks already exist in the 
country, but users pay a monthly fee to preserve the samples.  These 
stem cells are only available to family members of the original 
donor.  The new center will be financed by private donations of both 
umbilical cord blood and the money to finance the center.  The stem 
cells will be made available to any patient in need of the high tech 
treatment. 
 
Source - Santiago Times (no link) 
 
------------ 
Water Issues 
------------ 
 
¶5. Amazon the World's Longest River, Claim Brazilian Scientists 
 
BRASILIA 00001185  004.2 OF 016 
 
 
 
June 17, 2007 - The claim follows an expedition to Peru that is said 
to have established a new starting point further south and it puts 
the Amazon at 6.800km compared to the Nile's 6,695km. The new claim 
in Brazil follows an expedition by scientists which is said to have 
discovered a new source for the Amazon in the south of Peru and not 
the north of the country as had been thought for many years. While 
the exact location has yet to be confirmed from two choices, 
scientists say either would make the river the longest in the world. 
The Amazon is now said to begin in an ice-covered mountain in 
southern Peru called Mismi.  Researchers traveled for 14 days, 
sometimes in freezing temperatures, to establish the location at an 
altitude of 5,000m. The research was coordinated by the National 
Geographical Institute of Peru, with the help of their colleagues in 
Brazil. 
 
Source - MercoPress 
 
------- 
Forests 
------- 
 
¶6. Google to Harness Satellite Power for an Amazon Tribe 
 
June 10, 2007 - When the Brazilian government failed to defend his 
tribe against loggers and miners, the leader found a high-tech ally. 
 Amazon Chief Almir Surui knew it was the first step in his struggle 
to forge an alliance he hopes will save his 1,200-member tribe. 
Almir says loggers and miners have already killed 11 Surui chiefs -- 
Surui is both the common surname and name of the tribe -- who tried 
to prevent them from entering their lands over the past five years, 
and he says Brazilian government officials have failed to stop the 
violence.  So the 32-year-old indigenous leader, a stocky man who 
often dons a headdress made from feathers of Amazonian birds, opted 
for another route -- an appeal to Google.  During his visit to the 
Bay Area late last month, Almir, the first Surui to graduate from 
college, asked the folks at Google Earth for high-quality satellite 
imagery that would allow the tribe to monitor loggers and miners, 
who have no legal right to operate on the tribe's 600,000-acre 
reserve.  His plea fell on receptive ears with company officials in 
Mountain View, who are now at work on a plan to let the Surui use 
Google's technology to raise awareness of their plight by working 
 
BRASILIA 00001185  005.2 OF 016 
 
 
with satellite providers to vastly improve image resolution. 
 
NOTE: Chief Almir Surui's recent visit to the US was sponsored by 
the USG through the International Visitor's Program.  He was 
nominated by USAID/Environment Brazil. 
 
Source - SF Gate 
 
¶7. Peru: Harmonizing USG Cooperation in Forestry Sector 
 
JUNE 15, 2007 - With some of the most diverse ecosystems in the 
world, Peru seeks to find a balance between protecting its 
environment and deriving economic benefits from its natural 
resources.  As a vote in the U.S. Congress on the U.S.-Peru Trade 
Promotion Agreement (PTPA) approaches, the Government of Peru will 
need to address implementation of the agreement's environmental 
chapter, in particular amendments on illegal logging.  In order to 
harmonize the array of environmental programs offered by various USG 
agencies, representatives of USAID, the Foreign Agricultural Service 
(FAS) and ECON met with senior INRENA (GOP's National Natural 
Resource Institute) officials on June 1 to present and discuss USG 
forestry cooperation and assistance in Peru.  Post is developing a 
coordinated strategy for assistance to the Peruvian forestry sector 
which includes the following: USAID-funded activities in voluntary 
forest certification, forestry rule of law, INRENA institutional 
capacity building, and protected areas management; USDA support for 
providing PL 480 Title I resources to fund specific projects in the 
areas of voluntary forest certification, community management and 
reforestation, forestry rule of law, and institutional capacity 
building; and State to fund environmental law enforcement training. 
 
 
Source - LIMA 2099 
 
¶8. Brazilwood Gets Global Protection 
 
JUN. 07, 2007 - The iconic tree that gave Brazil its name and the 
world's violinists their bows [recently] got extra protection to 
prevent it from sliding toward extinction.  But the conference that 
overwhelmingly supported protecting brazilwood, or pau brasil in 
Portuguese, rejected similar moves for three other South American 
tropical trees - the Spanish cedar and two species of rosewood. 
 
BRASILIA 00001185  006.2 OF 016 
 
 
Brazil welcomed support for its plan to regulate trade in brazilwood 
timber by delegates at the triennial meeting of the Convention on 
International Trade in Endangered Species, or CITES.  The plan will 
protect the tree - known for its hard, blood-red wood - while 
allowing it to "continue to be used to delight us in the hands of 
inspired musicians and orchestras across the world," said Fernando 
Coimbra, head of the Brazilian delegation. 
 
Source - Miami Herald 
 
¶9. Green Gold: How a Brazilian Forest of Rubber Trees Is Bouncing 
Back 
 
MAY 30, 2007 - In the 19th century, Brazil dominated the global 
market in natural rubber - but not any more.  The country now 
accounts for less than 1 per cent of world production, and the 
reason is a fungus called Microcyclus ulei, which attacks the leaves 
of rubber trees. It has caused a massive fall in latex production. 
Scientists believe it is only a matter of time before the fungus 
spreads to the big rubber plantations of South-east Asia, which 
would affect anyone who uses rubber products - and that's just about 
everyone.  After two decades of research into resistant varieties of 
rubber trees, scientists in France and Brazil believe they could now 
be on the verge of a breakthrough. They have selectively bred more 
than a dozen varieties of rubber tree that appear to resist fungal 
infections well enough for the trees to thrive.  Field trials 
suggest that a handful of these varieties may be good enough to 
bring rubber production in Brazil up to the levels enjoyed in Asia. 
 
Source - Independent 
 
-------- 
Wildlife 
-------- 
 
¶10. Chile Researchers Help Repopulate Llamas in Patagonia 
 
JUNE 15, 2007 - Chilean investigators are working with Brigham Young 
University to genetically select the best and most productive 
characteristics of Chile's llama population. Their aim is to 
ultimately repopulated Chile's southern Patagonia with llamas, which 
could become an economic resource for the region and also contribute 
 
BRASILIA 00001185  007.2 OF 016 
 
 
to halting the erosion of Patagonia's fragile soil, which llama 
hooves do not wear down.  The Chilean Institute of Farming 
Investigations in the Agricultural Ministry has been working with 
Brigham Young University since 2005 in a genetics project that aims 
to identify a series of related molecular markers in llamas with 
valuable characteristics. The valuable characteristics include 
reproductive capabilities, resistance to disease, quality of fiber, 
and growth rate, among other things.  If successful, the geneticists 
could help developed some of the finest wools in the world.  The end 
result of genetically-enhanced llamas will eventually be 
reintroduced to the Patagonian lands of their natural-born 
ancestors. 
 
Source - Santiago Times (no link) 
 
¶11. Suriname: Psychedelic Purple versus the Luster of Gold 
 
JUNE 14, 2007 - The discovery of 24 new animal species by Surinamese 
and American scientists, including a frog with psychedelic purple 
markings, has given Suriname world-wide attention, as reported in 
over 150 newspapers and journals.  These articles have also 
highlighted the threat to Suriname's highly diverse ecosystem from 
mercury pollution caused by illegal gold mining.  The study that led 
to the discoveries was carried out by Conservation International 
(CI) and was paid for, by bauxite mining companies Suralco and 
BHP-Billiton, who are looking into the environmental impact of 
mining in their concession area.  Community conscious Suralco looks 
to be a good corporate citizen, while illegal gold miners continue 
to pollute the area. 
 
Source - PARAMARIBO 303. 
 
-------------------- 
Science & Technology 
-------------------- 
 
¶12. Venezuela Invigorates Gambian Science 
 
JUNE 06, 2007 - The Governments of Gambia and Venezuela have 
finalized a five-year agreement to cooperate on improving research 
and development in agriculture, health, and energy sectors in the 
African country.  The agreement, finalized during the Gambian 
 
BRASILIA 00001185  008.2 OF 016 
 
 
president's tour of South America last month, will see Venezuela 
providing funds, technicians and researchers to the Gambia, and 
encourage cooperation between public research institutions, 
universities and private enterprises in the two countries. Venezuela 
will also help improve infrastructure in institutions such as the 
University of The Gambia.  The agreement - now in effect - was 
ratified by members of the Gambia National Assembly in April. 
 
NOTE From US Embassy Caracas:  The Venezuelan government frequently 
signs these types of cooperation agreements, but rarely follows 
through with much of what it promises. 
 
Source - SciDev 
 
¶13. Brazil is out of ISS Project 
 
MAY 31, 2007 - Brazil is no longer an active participant in the 
International Space Station (ISS) project, said John Logsdon, 
director of the George Washington University Space Policy Institute 
and a NASA advisor. "Although it is unlikely that NASA will take any 
formal action to cancel its contract with the Brazilian Space 
Agency, Brazil no longer appears [in NASA documents] as an ISS 
contributor," he was quoted as saying.  The press report explains 
how Brazil failed to provide any of the ISS equipment described in a 
1997 agreement with NASA, at an estimated cost of USD 120 million. 
Logsdon also reportedly said that Brazil's inability to meet its 
obligations and the fact that Brazil paid Russia to fly its 
astronaut left a "bad taste in the mouth" of NASA officials.  The 
Brazilian Space Agency (AEB) made the following statement in the 
story: "[AEB] and Itamaraty are beginning negotiations with NASA and 
the U.S. State Department towards a new state of cooperation between 
Brazil and the United States, which had, at a certain time, a 
setback because of the problem with the U.S. participation in [the 
Brazilian satellite launch base at] Alcantara. ... AEB isn't just 
interested in participating in the ISS project, but also [more 
broadly]. Brazil and the United States have come closer together and 
the terms of a new agreement could be broader." 
 
Source - Public Affairs US Embassy Brasilia 
 
¶14. Foreigners have more patents than Nationals in Colombia 
 
 
BRASILIA 00001185  009.2 OF 016 
 
 
June 02, 2007 - Ninety-three percent of patent requests in Colombia 
are from entities from outside the country, according to the head of 
the Industrial Property of the Superintendence for Industry and 
Commerce, Giancarlo Marcenaro Jimenez.  In 2006, his office received 
2,003 requests, of which 1,862 were foreign and only 141 (7 percent) 
were presented by residents.  This reflects a growing interest from 
foreign companies towards Colombia, but also the lack of knowledge 
of national firms to legalize their own creations and little 
technological innovation in the country.  According to Jimenez, few 
people working with innovation and development are aware that they 
can protect their work results through patents.  Jimenez also 
pointed out that Colombians have a discount in fees charged for 
patenting, which should motivate more national requests. 
 
Source - SciDev 
 
¶15. Venezuelan R&D Investment Increases Fivefold 
 
MAY 29, 2007- A Venezuelan law, which requires companies to 
contribute part of their annual income to science, technology and 
innovation programs, has increased investment in scientific research 
and development fivefold.  Hector Navarro, Venezuela's Minister of 
Science and Technology, announced the news at a press conference on 
May 18.  Navarro said that 4,579 out of 6,649 eligible public and 
private companies - those with annual gross revenues above USD 1.5 
million - were forced by law to contribute 0.5-2 per cent of their 
annual gross income to the country's scientific development.  The 
funds were collected for the first time in January, based on profit 
calculations for 2005.  Navarro says the companies have contributed 
approximately USD 2.5 billion, increasing the investment in research 
and development to 2.11 per cent - up from 0.45 per cent in 2005 - 
of gross domestic product. 
The total investment greatly exceeded the expectations of Venezuelan 
science authorities, who had calculated the companies' contribution 
to be about USD 860 million. 
 
Source - SciDev 
 
--------- 
Pollution 
--------- 
 
 
BRASILIA 00001185  010.2 OF 016 
 
 
¶16. Pollution Crisis: Santiago's Air Worst of Last Eight Years 
 
JUNE 15, 2007 - Santiago's air pollution problem has reached 
critical mass.  With the worst pollution months of July and August 
yet to come, Santiago has already registered more "high risk" 
pollution days than all of 2006.  May 12 was the single worst day in 
the last eight years, according to Chile's National Commission of 
the Environment.  Santiago's Pollution Plan to solve this annual 
problem has had a rough go of things, due to problems with the 
pollution measuring system, a lack of personnel to enforce the 
restrictions, and a lack of rain.  Santiago's population is 
experiencing high rates of respiratory problems.  Many Chile's 
government officials have been reduced to praying for rain as a 
means to fight pollution. 
 
Source - SANTIAGO 977 
 
¶17. Chile: Toxic Runoff Devastates Region VII River 
 
JUNE 8, 2007 -  Authorities in Region VII declared an environmental 
state of emergency at the Mataquito River due to a toxic runoff that 
has killed thousands of fish and birds.  The likely source of the 
pollution is a pulp plant located near the town of Licancel.  The 
plant is owned and operated by forestry giant CELCO, a Chilean-owned 
company with a dismal environmental record.  On June 6 the regional 
health ministry imposed a fishing ban and warned people not to eat 
any fish caught in the highly contaminated river. This is not the 
first time for CELCO, in 2004 the company caused a disaster of 
immeasurable proportions in Region XIV's Carlos Anwandter Wetland 
Sanctuary, where thousands of black-necked swans died and/or 
migrated away because of pulp plant poisoning.   Autopsies conducted 
on the dead swans attributed their demise to alarmingly high 
concentrations of iron and other metals in the water.  The chemical 
change in the polluted area was so extreme it altered the color of 
the water and killed off the swans' lichen food source. 
 
Source - Santiago Times (no link) 
 
-------------- 
Climate Change 
-------------- 
 
 
BRASILIA 00001185  011.2 OF 016 
 
 
¶18. World Bank Targets Forest Preservation-Climate Link 
 
June 11, 2007 - The global effort to stem climate change could soon 
include paying countries in the tropical belt to not cut down their 
rain forests, beginning with a World Bank pilot project.  The World 
Bank is planning to start a USD 250 million investment fund to 
reward countries such as Indonesia, Brazil and Congo for "avoided 
deforestation."  The Group of Eight leading nations, after meeting 
in Germany, concluded that stopping deforestation could provide a 
"significant and cost-effective contribution toward mitigating 
greenhouse-gas emissions" and encouraged the development of the 
World Bank's project.  Many details of the project remain to be 
ironed out.  The World Bank hopes Group of Eight nations will supply 
most of the USD 250 million, Mr. Bosquet said.  The bank will work 
with governments, local communities and nongovernmental 
organizations to set guidelines on how to monitor projects and make 
sure money will be channeled only to those that strictly protect 
forested areas.  To qualify, governments also will have to sign up 
to nationwide-action plans combating issues such as illegal logging. 
 
 
Source - World Bank (please contact Larissa Stoner for complete 
article) 
 
¶19. Amazon State Adopts Brazil's First Global Warming Law 
 
JUNE 5, 2007 - Brazil's sprawling Amazon state enacted the country's 
first law to fight global warming by selling carbon credits from 
communities that limit deforestation and environmental degradation. 
The law creates a "jungle fund" or "forest scholarship" that 
"rewards jungle communities for protecting their habitat and 
reducing deforestation," said Amazon Governor Eduardo Braga.  Under 
the scheme, countries and businesses with high levels of pollution 
can invest in the fund and receive carbon credits from local 
communities that agree to curb deforestation, Amazon Environmental 
Secretary Virgilio Viana told reporters.  He said the state, which 
 
SIPDIS 
accounts for one third of Brazil's vast Amazon jungle, hopes to 
build the fund to 300 million dollars, with 30 million a year going 
to some 60,000 families in the region by 2010. Currently 8,500 
families are listed to benefit.  The law was welcomed by 
environmental groups who hoped it will "set a vital example" for 
Brazil's federal government to follow, said Greenpeace's regional 
 
BRASILIA 00001185  012.2 OF 016 
 
 
director Paulo Adario. 
 
Source - YahooNews 
 
------ 
Energy 
------ 
 
¶20. Brazil to Assist Paraguay in Exporting Biofuels 
 
MAY 30, 2007- Paraguay's Minister of Industry and Commerce Jose 
Maria Ibanez stated that his country wishes to export biofuels with 
the support from Brazil in order to strengthen its production.  "We 
are building together a new scenario by becoming a region that 
exports renewable energy instead of importing petroleum," stated 
Ibanez at the end of the Paraguay-Brazil Biofuels Seminar, held in 
Asuncion May 21.  The heads of state from both Brazil and Paraguay 
were present at the event, where they signed a Memorandum of 
Understanding on the production of biofuels.  The Ministry of 
Industry and Commerce also took the opportunity to announce the 
creation of a National Institute for Biofuels, which will regulate 
norms and guarantee the quality of the product. 
 
Source - SciDev 
 
¶21. Colombia and Cuba Sign Energy Cooperation Agreement 
 
JUNE 08, 2007 - On May 22, The Ministry of Mines and Energy (MME) of 
Colombia and the Ministry of Basic Industry of Cuba signed a 
three-year agreement for energy cooperation aimed at developing 
alternative energy sources and improving efficiency in both 
countries.  There are no commercial provisions in the accord. 
Rather, the agreement calls for the promotion of energy efficiency 
and development of renewable energy sources through academic, 
cultural and technical exchanges.  Biofuels exchanges figure 
prominently as Cuba seeks to jump-start its ethanol industry with 
support from Colombia, as well as Venezuela. 
 
Source - BOGOTA   00004172 
 
¶22. Chile's Search for a Diversified Energy Matrix 
 
 
BRASILIA 00001185  013.2 OF 016 
 
 
JUNE 07, 2007 - The Achilles heel of Chile's economy is its need to 
import 90 percent of its energy.  There is no immediate solution to 
that dependency, but the Government of Chile is looking at creative 
and environmentally-sound ways to address this weakness. 
Diversification is one part of the solution.  For example, draft 
legislation would require that at least five percent of Chile's 
energy come from renewable sources by 2010.  In addition to 
renewable sources, there is some interest in nuclear energy as part 
of the long-term solution.  At the same time, Chile's chronic energy 
problems must contend with a new Environmental Ministry not willing 
to fast-track energy projects. 
 
Source - SANTIAGO 914 
 
¶23. The Madeira Complex: International Banks to Fund Deforestation 
and Displacement 
 
MAY 15, 2007- Along the Madeira, the second-largest tributary to the 
Amazon, local communities are facing the proposed construction of 
the Santo Antonio and Jirau dams, part of the Madeira River Complex. 
 The project has received a commitment of partial funding from the 
Brazilian national bank Banco Nacional de Desenvolvimento (BNDES) 
and forms part of the portfolio of 335 internationally-financed 
megaprojects known as IIRSA (the Initiative for the Integration of 
Regional Infrastructure of South America). The Madeira Complex 
includes four dam projects: two in Brazil, one binational dam 
between Brazil and Bolivia, and one in Bolivia. The Santo Antonio 
and Jirau dams would produce 3,150 and 3,300 megawatts of 
hydroelectricity respectively for the energy-deficient urban area of 
Sao Paulo.  The total cost for the two dams alone is calculated at 
USD 9 billion. Locks built to control the flow of water through the 
dams and dredging at the head of the 3,380-km river would also 
expand transport of soy, timber, and minerals along the Madeira, 
integrating a waterway that extends from the Peruvian and Bolivian 
Andes to the Atlantic port of Belem. According to local leaders in 
Porto Velho, Brazil, the environmental impact assessment (EIA) of 
Santo Antonio and Jirau ignores the indirect and regional 
environmental and social impacts for local populations downriver, 
such as sediment and mercury accumulation, and diminished fish 
breeds. Instead, the EIA takes into account only direct impacts 
surrounding the urban municipality of Porto Velho and nearby areas. 
 
 
BRASILIA 00001185  014.2 OF 016 
 
 
 
Source - Americas IRC Online 
 
------- 
General 
------- 
 
¶24. Guyana: Payment for Ecosystem Services Is Golden Opportunity, 
Seminar Told 
 
JUNE 14, 2007 - Payment for ecosystem services is a golden 
opportunity for the Guiana Shield (Suriname, French Guiana and 
Guyana) and Guyana has many natural assets so Guyanese should 
develop long-term strategic ways to take advantage of this, a noted 
Costa Rican environmentalist says.  According to Carlos Manuel 
Rodriguez, Regional Vice President of Conservation International 
(CI) and former Costa Rican Minister of Environment and Energy, 
policy initiatives by governments and mechanisms that offer Payment 
for Ecosystem Services (PES) aid in environmental sustainability. 
These were some of the views he expressed at the half-day seminar at 
Le Meridien Pegasus Hotel. There were working session discussions on 
presentations on 'PES in Costa Rica: Conservation and Rural 
Development' by Rodriguez and 'Payment for Ecosystem Services: 
Shared Agenda between Conservation and Development' by Rosimeiry 
Portela from CI. Conservation International (CI) Guyana hosted the 
afternoon seminar which saw participation by environmentalists, 
government officials, including Prime Minister Samuel Hinds and 
Presidential Adviser Navin Chandarpal, and representatives from the 
diplomatic community. 
 
Source - Stabroek News 
 
¶25. Brazil Bars USAID-Sponsored Project under Alleged Suspicion of 
NGO Actions in the Amazon 
 
MAY 31, 2007 - A two-page spread in Correio, the main daily in the 
federal capital, claimed that the Brazilian Foreign Ministry has 
just blocked the Amazon Basin Conservation Initiative (ABCI), a 
project sponsored by the USAID, under suspicion that participating 
NGOs would be involved in espionage.  Story carries a Q&A interview 
with Brazilian General Maynard Marques Santa Rosa, Secretary for 
International Affairs with the Defense Ministry, who is reportedly 
 
BRASILIA 00001185  015.2 OF 016 
 
 
preparing a dossier on the issue for Itamaraty.  "Some of these NGOs 
are used, quite easily and cheaply, as instruments for intelligence 
gathering by foreign intelligence agencies.  This is known because 
the secret services of the United Kingdom and of the United States 
have been working in this region," Gen. Santa Rosa is quoted as 
saying. Story notes that the general took a course on "policy and 
strategy" at the U.S. Army War College in Pennsylvania in 1988-89. 
According to the daily, "That's where he detected for the first time 
the foreign interests on the Brazilian Amazon, where, according to 
his estimates, there are 100,000 NGOs of all kinds operating without 
any control from the Brazilian government." 
 
Source - Public Affairs US Embassy Brasilia 
 
¶26. Partnerships from Five Nations Receive 2007 Seed Awards for 
Innovation in Local Sustainable Development 
 
MAY 30, 2007 - The global community of organizations and agencies 
that constitute the Supporting Entrepreneurs for Environment and 
Development (Seed) Initiative announced the winners of the 2007 Seed 
Awards.  The South America winners are: In Brazil, Projeto Bagagem, 
which creates unique travel packages that give visitors a first-hand 
look at local development initiatives and nature reserves in a novel 
approach to community-based ecotourism; In Ecuador, a partnership 
operating in the Andes has reintroduced native cereal and tuber 
crops that diversify food production, improve local food security 
and reduce soil degradation. The partnership then sells surplus 
yield through a women's organization it has created in three 
communities resulting in new economic, financial and marketing 
engines for the area; In Peru, T'ikapapa links small-operation 
potato farmers also in the Andes with high-value niche markets in 
urban centers. T'ikapapa promotes biodiversity conservation and 
environmentally friendly potato production techniques while giving 
farmers open access to technological assistance and innovation, 
encouraging local farmer's associations and propagating the flow of 
market information.  Over the next 12 months, each of the five Seed 
Award recipients will receive targeted support services specifically 
designed to expand and extend their activities, turning them from a 
good project idea into a socially, economically and environmentally 
sustainable enterprise. 
 
Source - USG Sustainable Development Program 
 
BRASILIA 00001185  016.2 OF 016 
 
 
 
¶27. Brazil Federal Prosecutors Ask State to Suspend Alcoa's Bauxite 
Mining License 
 
MAY 29, 2007- The federal prosecutor's office in the eastern Amazon 
state of Para May 21 asked the state governor to suspend Alcoa 
Aluminum's license to extract bauxite in a planned open-pit mine 
because of environmental irregularities.  The prosecutor's office 
alleged in an official letter sent to the governor that Alcoa 
workers doing ground-leveling and other mining site preparations 
have contaminated streams with untreated human fecal waste. As a 
result, hepatitis is on the rise in nearby villages that get their 
drinking water from those streams.  The prosecutor's office also 
contends that the environmental license for the mine should have 
been issued by IBAMA, the Environment Ministry's licensing agency, 
and not Sectam, the Para state environmental licensing agency, 
because the environmental impact of Alcoa's bauxite mining 
operations will extend beyond Para state and into neighboring state 
of Maranhao. 
 
Source - BNA 
 
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