Tambo-40 would have been for export of hydroelectric power to Brazil and was one of the projects contemplated under the energy agreement signed between Peru and Brazil in June 2010. Odebrecht’s decision comes as a blow to President Ollanta Humala, who has recommitted his government to the agreement signed by his predecessor, President Alan García.
The agreement commits Peru to supplying more than 6000 MW of power to Brazil, most of which is expected to come from hydropower in the Peruvian Amazon, which is one of the world’s biodiversity hotspots. Many of the projects contemplated by the agreement were designed by the Brazilian electric utility Eletrobrás in conjunction with Brazilian multinational construction giants Odebrecht and Andrade Gutierrez, all of which would be directly involved in dam construction with funding from the Brazilian national development bank, BNDES.
