Projected to be constructed in the Amazon region, the plant failed to secure the requisite environmental license as it is believed to adversely affect over 10,000 indigenous residents.

The project may also pose risks to domestic ecosystems in Pará state’s Itaituba and Trairão regions in northern Brazil, reported Business News Americas.

According to Brazil’s public prosecutor’s office, Judge José Airton de Aguiar Portela announced that the proposal lacked an adequate environmental impact appraisal and did not display concern for the indigenous tribes.

"The government cannot disregard laws that it itself implemented, irrespective of the urgency of the country’s energy demands," Portela was quoted as saying.

São Luiz do Tapajós, owned jointly by Eletrobras, Eletronorte, EDF and builder Camargo Corrêa, was scheduled to commence operations in December 2017.