According to newswire reports, a motion had been filed which called for a halt in construction until indigenous groups were consulted. However, the Federal Court in Brasilia ruled 2-1 in favour of upholding a legislative decree that authorized construction.
The ruling is expected to now be appealed in Supreme Court.
The Belo Monte Dam, located on Xingu River Basin, will have an installed capacity of 11,233MW. It is expected to start commercial operation in February 2015. The project has faced fierce opposition from environmental groups concerned about negative impacts on the ecosystem and wildlife in the region.
The project is being built by the Norte Energia consortium, led by state-run utility Eletrobras Chesf, which won the rights to build and operate Belo Monte in an auction held in April 2010. It was recently announced that Brazilian power utility Cemig, in partnership with power distribution affiliate Light SA, is to take a 9.77% stake in the project.
