Brazil's environment agency has given the go-ahead for what will be the world's third-largest hydro-electric plant and dam, over the strong objections of indigenous groups, activists and environmentalists.
The regulator issued licenses to the consortium in charge of Belo Monte, to build a massive dam on the Xingu River, a tributary to the Amazon.
Originally conceived 30 years ago, progress on Belo Monte has been slowed by protests, including an incident in 2009 in which Kayapo Indians armed with clubs and machetes attacked a state electricity official.
The 6km-long dam will displace 30,000 river dwellers, partially dry up a 100km stretch of the Xingu river, and flood large areas of forest and grassland.
Critics from singer Sting to Hollywood director James Cameron and the environmental group Greenpeace say the dam will damage the environment and harm thousands of people living in the region.
The government says the 11,200-megawatt project, due to start producing electricity in 2015, is needed to provide power to Brazil's fast-growing economy.
It will be the world's third-biggest hydro-electric dam after China's Three Gorges and Itaipu, on the border of Brazil and Paraguay.
Norte Energia, the consortium that won the auction to build and operate Belo Monte, is made up of the state-run utility holding company Eletrobras, Brazil's second-largest pension fund Petros and local construction companies.
