| 06/06/2006 |
| THE IRAPÉ PLANT WILL BE INAUGURATED ON THURSDAY |
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The Irapé Plant – the President Juscelino Kubitschek Hydroelectric Plant, which will be inaugurated this Thursday (June 08), is the largest current Cemig project and the most important enterprise undertaken thus far in the Jequitinhonha Valley. Its implementation represents investments on the order of R$ 1 billion in one of the neediest regions in Minas Gerais, with resources contributed by both Cemig and the State government. The Minas Gerais government is participating with approximately R$ 100 million in the enterprise. The resources contributed by the State were fundamental in allowing the Irapé project to execute a broad socio-environmental program.
The Irapé project has positive repercussions throughout the Valley, which is home to approximately 1 million people. There are seven municipalities in the area covered by the reservoir: Turmalina, Leme do Prado, José Gonçalves de Minas and Berilo, on the right bank, and Grão Mogol, Cristália and Botumirim, on the left bank. Other municipalities that have been influenced are Araçuaí, Virgem das Lapa and Josenópolis. These ten municipalities have a population of approximately 132 thousand people.
Constructed on the Jequitinhonha river, between the municipalities of Grão Mogol and Berilo, the President JK Hydroelectric Plant has solved an age-old dilemma: there is no growth in the Valley because there is no energy and there is no energy because there is no growth. The cementing in place of the plant opens a new concrete prospect of attracting large-sized enterprises to the region, particularly in the area of eucalyptus and pulp processing, and will even make possible the creation of small businesses focused on the sustainable exploitation of the lake.
Getting the region moving
In addition to directly and indirectly creating approximately 12 thousand jobs during the execution of the project, the construction of the dam will permit the flow of the Jequitinhonha river to be regulated during both the rainy and dry seasons and increase the amount of electric energy offered to the region, thus providing the necessary conditions for attracting new industrial and agricultural projects. With the formation of the lake, the possibility of tourism-related business has also arisen around the 137 km2 of reservoir.
During the four years of construction, the region's economy was significantly boosted, owing to the large amount of services hired from the area. Another positive impact upon the local economy was the generation of tax revenues. Berilo and Grão Mogol, the locations of Irapé job sites, experienced a substantial increase in ISS (Service Tax) revenues. According to the IBGE – the Brazilian Statistics and Geography Institute, Berilo, for example, registered a record 300 increase in GDP.
As soon as Irapé begins to generate electricity, the seven municipalities in the project's area of influence will have the right to access resources from CFURH – Financial Compensation for the Utilization of Hydraulic Resources, called royalties, estimated at almost R$ 3 million annually. These municipalities will also benefit from the increase in the base value for the calculation of the ICMS tax of approximately R$ 123 million per year. The result is that the municipal governments in the region will benefit from a substantial increase in the tax revenues.
In terms of the electric system, the Irapé plant will represent more reliable energy for the region, permitting the strengthening of the transmission and local sub-transmission systems. Two new transmission lines associated with the project will result in further investments. The first of these – between Montes Claros and Irapé – entered into operation in December. The second line, scheduled for this year, will link Irapé with Aracuaí.
Plant and reservoir
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