1. Maputo March 25-26, 2009

2. HYDROPOWER: A Key Tool for Sustainable Development CONTENT 1. Mphanda Nkuwa Hydropower Project 2. Sustainability in Hydropower Projects 3. SRE Approach for Mphanda Nkuwa Hydropower Project 4. Corporate Social Responsability. Experiences 5. Environmental and Social Programs related with Hydropower Projects. Experiences

4. MPHANDA NKUWA HYDROPOWER PROJECT Location: Zambeze River, 60 Km downstream of Cahora Bassa dam (Mozambique) Run-of-river dam (90 m high) Capacity:1500 MW Reservoir: 100 km 2 Cost: 2 Billion $US

6. MPHANDA NKUWA HYDROPOWER PROJECT Contribution for generation supply in Mozambique. Contribution for poverty alleviation in Mozambique. Contribution with electricity for the Southern Africa Power Pool, with a positive impact for the economies of the SADC region. Clean energy in a region based on coal-generated electricity, where thermal plants are one of the main sources of CO 2 Benefits from Tax and Royalties for the Government of Mozambique; Increase in the Mozambiques GDP; About 4,000 of direct employment and training opportunities for local employees and contractors

8. HYDROPOWER: A Key Tool for Sustainable Development Hydropower projects can make a significant contribution to sustainable development, when they are developed and operated in an economically viable, environmentally sound and socially responsible manner

9. HYDROPOWER: A Key Tool for Sustainable Development PILARS OF SUSTAINABLE DEVELOPMENT ECONOMIC DEVELOPMENT ENVIRONMENTAL CAUTION SOCIAL JUSTICE Meeting needs of present without compromising the ability of future generations to meet their own needs

10. HYDROPOWER: A Key Tool for Sustainable Development Economic Development Sustaining multiple uses of water Fostering regional & industrial development Advanced technology, low operating costs, long plant life Revenue from power sales/export

11. HYDROPOWER: A Key Tool for Sustainable Development Environmental Caution Renewable resource Supporting biodiversity by providing new habitats Avoiding air pollution Slowing down climate change Reducing acid rain by offsetting other forms of power generation (as coal thermal plants)

12. HYDROPOWER: A Key Tool for Sustainable Development Social Justice Alleviating poverty by encouraging economic development and bringing water, power and light to those in need Providing wider access to a resource that is not evenly distributed in time and space Offsettig adverse climate impacts and preserving finite resources for future generations Passing on an electricity source with long viability and low maintenance costs for the benefit of future generations

14. Environmental and Social Mozambican Legal Requirements Equator Principles IFCs Environmental and Social Performance Standards World Dams Comission recomendations Experiences of CAMARGO CORRÊA Group MPHANDA NKUWA HYDROPOWER PROJECT MNKHP will be developed taking in consideration:

15. Full Environmental and Social Impact Assessment Environmental Management Plan Resettlement and Compensation Plan Public Participation Process Sustainable development projects for local communities Clean Development Mecanism (CDM) Independent review MPHANDA NKUWA HYDROPOWER PROJECT

16. Participative Process involving representatives of local communities, government institutions and other stakeholders to identify and priorize sustainable development projects to be implemented in local communities MPHANDA NKUWA HYDROPOWER PROJECT Benefits for Local Communities

18. Camargo Corrêa is one of the world leaders in the construction of Hydroelectric Power Plants The Company has built, alone or in association with other corporations, 26 Hydroelectric Power Plants corresponding to 37,500 MW of installed capacity (7% of the worlds constructed hydroelectric plants), including 2 out of the 5 biggest hydroelectric plants in existence on the planet. Tucuri HydropowerItaipu HydropowerIlha Solteira HydropowerMachadinho Hydropower About CAMARGO CORRÊA

19. In 2006, the Company signed the Sustainability Letter: The Innovation Challenge formalizing the commitment of : contributing to build a more just society, integrating sustainability in the organization strategic map, business management and daily activities. Corporate Social Responsability Experiences

20. Focus: Community development, through implementation of education and income generation programs, with priority for communities close to units Base on Community Development Commitees with representatives of government, NGOs, local leaders and professionals from the Company through participative process defines priorities programs to be implemented Corporate Social Responsability Experiences

21. Together for the Ideal School Project, comprising schools rehabilitation with the community, capacity-building (Campina Grande, Brazil) Houses built by members of community, after training program (Sarapuí, Brazil) Education and housing programs Corporate Social Responsability Experiences

22. Income generation programs for communities Woman from the community selected to train other 80 women on use of fabric wastes (Aracajú, Brazil) Waste selecting company created for 11 families of waste scavangers Camargo Correa provided equipment, capacity building in managment and training on health &environment Salto Pilão Hydropower allowed to transport its construction recycling wastes for this plant Corporate Social Responsability Experiences

23. Income generation programs for communities Training on gardening and envionmental education (São Paulo, Brazil) Training program in basic electricity for youth (Santa Rita, Brazil) Corporate Social Responsability Experiences

24. Food Education Program in collaboration with CAMARGO CORREA, contributing for the Poverty Reduction Program (Mozambique) Truck with a kitchen is used to awarness on nutrition importance and demonstration of receipts with traditional ingredients Corporate Social Responsability Experiences

26. Environmental and Social Management Programs in Hydropower Plants Waste management Erosion control program Rehabilitation of affected areas Monitoring of sediments and seismic Establishment of a protected area around the reservoir Rescue of flora and fauna

27. Environmental and Social Management Programs in Hydropower Plants Monitoring of ictiofauna and fisheries Environmental Awareness campaigns Resettlement programs Support development of agriculture and livestock activities for local communities Support development of tourism activities around reservoir

29. NUCLEUS APPROACH created nucleus irradiate biodiversity for the surrounding area

30. NUCLEUS APPROACH TRANSPOSITION OF TREE BRANCHES HYDROSEEDING GRASS SEEDING SOIL TRANSPOSITION Fonte: Reis et al., 2003

31. soil coverage, soil reestruturation and development of a radicular system for erosion control

32. SOIL TRANSPOSITION deposition of a thin soil layer on the areas to be rehabilitated, using its seeds bank and all soil associated fauna

33. TRANSPOSITION OF TREE BRANCHES

36. dry or green branches, used to create resting, shelter and foraging areas for birds and bats

37. ARTIFICIAL PERCHES dry or green branches, used to create resting, shelter and foraging areas for birds and bats

39. different types of plants (grass, bush and trees)

40. seeds colection during whole year

44. GENETIC DIVERSITY PRODUCTION OF SEEDLING PLANTS ENSURING GENETIC VARIABILITY

46. THANKS Egídeo Leite Madalena Dray