Awarding of Brazilian dam contract prompts warning of bloodshed

Indigenous leaders in Brazil are warning of imminent violence after a successful tender for the rights to construct a giant hydro-electric plant in the Brazilian Amazon which opponents claim will wreak havoc on the rainforest and its inhabitants. The tender for the Belo Monte dam, on the Xingu river in the state of Pará, was won by a consortium of Brazilian companies on Tuesday, taking the government one step closer towards the construction of the £7bn dam, which would reputedly be the third biggest of its kind, with the capacity to produce some 11,000MW of power. One Brazilian minister told reporters that the president, Luiz Inácio Lula da Silva, was pleased with the result. But environmentalists, indigenous leaders and their supporters, including Avatar's director, James Cameron, who has made two recent visits to the region, have vowed to fight to prevent construction. The Kayapó leader Raoni Metuktire, who gained international exposure in the 1980s and 1990s touring the world with Sting, said indigenous men from the Xingu were preparing their bows and arrows in order to fight off the dam.