ODEBRECHT. Energy on the horizon. The Santo Antônio Hydroelectric Plant begins to take shape. Braskem now produces polypropylene

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1 ODEBRECHT #148 vol XXXVII may/jun 2010 I N F O R M A English Edition Braskem now produces polypropylene in the UNITED STATES The challenge of building ROADWORKS while protecting historic aqueducts IN PERU a new era begins, marked by diversified operations Energy on the horizon The Santo Antônio Hydroelectric Plant begins to take shape

2 today Africa, In the five countries on this continent where our teams are active, Odebrecht is building key projects for bringing about development and improving people s quality of life. The projects underway in Angola (photo), Libya, Mozambique and Liberia are being built by workers of various nationalities. In these operations, maintaining the Group s cultural unity has always been a complex and gratifying challenge. ODEBRECHT ARCHIVE

3 Rota das Bandeiras concessionaire marks first year of operations of the D. Pedro I Corridor in SÃO PAULO STATE Six projects delivered and three concessions begun mark a new phase of operations in PERU Tancredo Neves Administrative City, designed by Oscar Niemeyer, officially opens in BELO HORIZONTE Building the powerhouse and spillway are the current priorities on the SANTO ANTÔNIO HYDRO project Odebrecht adopts sustainability standards for new auditorium at its SALVADOR headquarters building The challenge of preserving historic aqueducts while completing the LISBON beltway Braskem starts producing polypropylene in THREE US STATES Equipment support area offers Odebrecht PROJECTS operational training solutions Program encourages Odebrecht teams to produce innovations at the JOBSITES Awareness-raising campaign helps reduce consumption of plastic bags in BRAZIL Odebrecht s growth in BRAZIL and WORLDWIDE leads to extensive internal restructuring Central State Hospital in VITÓRIA becomes a benchmark for innovative management OOG wins four INTERNATIONAL prizes for the quality of its project financing ETH launches the Social Energy program, covering all FIVE COUNTIES where it is active Food Acquisition Program is a new way to contribute to the SOUTHERN BAHIA LOWLANDS Historian with a PhD from an ISRAELI university is the winner of the Clarival do Prado Valladares Prize ODEBRECHT I N F O R M A sections The Santo Antônio Hydroelectric Plant, under construction on the Madeira River in Rondônia, Brazil. Photo by Roberto Rosa in the loop profile people interview newsroom notes argument

4 02 It s all about people For a business, there is nothing more important than the people who comprise it their desire to develop and their spirit of service. An organization can only grow and contribute to the development of its local communities through the drive and expertise of its members. In this issue of Odebrecht Informa, you will read about some of Odebrecht s efforts to hone its teams skills and enable them to make their contribution to progress in Brazil. At a time when major infrastructure projects that are key to this country s development are underway, the education and training of Brazilian workers is a crucial factor for achieving their nation s goals. One example of Odebrecht s work in this area is the initiative underway at the Santo Antônio hydroelectric plant construction project in the state of Rondônia. The Ongoing Professional Qualification Program Acreditar (Believe) has been responsible for producing 98% of the over 10,000 skilled professionals working on that project. Odebrecht conceived and implemented the project, working in partnership with the State of Rondônia, the City of Porto Velho, the SENAI (National Industrial Apprenticeship Service) and the University of Rondônia (UNIRON). Today, 84% of the people working on the Santo Antônio project are local hires. This factor is having a positive impact on the socioeconomic scene in that state. More than that, it is making it possible for individuals, families and communities to enjoy a new era, benefiting from real opportunities to develop and grow their incomes, self-esteem and civic spirit. The same phenomenon can also be observed through ETH Bioenergy s Social Energy program at its five production hubs. In Nova Alvorada do Sul, Mato Grosso do Sul; Cachoeira Alta and Caçu, Goiás; and Teodoro Sampaio and Mirante do Paranapanema, São Paulo State, the company is working with the public, county governments and an NGO to create the conditions for introducing initiatives focused on sustainable development. Eschewing a paternalistic mindset, the spirit of the program is that of organizing projects which encourage towns to grow on their own. In this issue, you will also find out how a lack of specific professional education programs led to the creation of training programs for company members who work with cargo shipments. You can check out the creative financial solutions that made it possible to build drilling ships that will produce oil in Brazil s offshore fields. You will see how it is possible to build a major roadway while preserving historic treasures. Finally, you will discover how Brazil s petrochemical industry has hoisted its flag in the United States. All of this was done by people. Through their hard work and power for change. It s all about people. Happy reading. Videoreporters > Jaguaribe Marine Outfall > São Paulo Grand Prix trophy > Braskem in the United States > Young Angolan Partners Visit the magazine s blog for exclusive extras not available in the print edition. Online archives Read back issues of Odebrecht Informa, Odebrecht S.A. Annual Reports since 2002, the Odebrecht Group s Annual Meetings since 2002 and milestone publications (Special Issue on Social Programs, 60 years of the Odebrecht Group, 40 Years of the Odebrecht Foundation and 10 Years of Odeprev) ODEBRECHT Founded in 1944, the Odebrecht Group is a Brazilian organization made up of diversified businesses with global operations and world-class standards of quality. Its 92,000 members are present in the Americas, the Caribbean, Africa, Asia and Europe. Responsible for Corporate Communication at Construtora Norberto Odebrecht S.A. Márcio Polidoro Responsible for Editorial Programs at Construtora Norberto Odebrecht S.A. Karolina Gutiez Business Area Coordinators Nelson Letaif Chemicals & Petrochemicals Miucha Andrade Ethanol & Sugar José Cláudio Grossi Oil & Gas Daelcio Freitas Environmental Engineering Sergio Kertész Real Estate Developments Coordinator at Odebrecht Foundation Vivian Barbosa Editorial Coordination Versal Editores Editor-in-Chief José Enrique Barreiro Executive Editor Cláudio Lovato Filho English Translation by H. Sabrina Gledhill Art/Graphic Production Rogério Nunes Photo Editor Holanda Cavalcanti Infographics Adilson Secco Illustrations Gilberto Marchi Electronic Publishing Maria Celia Olivieri Printing 1,340 copies Pre-Press/Printing by Pancrom Editorial Offices: Rio de Janeiro São Paulo versal@versal.com.br Originally published in Portuguese. Also available in Spanish.

5 03 Argentina I Working under contract to Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima (Cammesa) through Nación Fideicomisos S.A., Odebrecht will be responsible for installing 155 km of gas pipeline loops parallel stretches alongside the existing San Martín Gas Pipeline, also built by Odebrecht and operated by Transportadora Gas del Sur to expand the Firm Gas Transport project. This initiative will add 2.4 million cubic meters of natural gas per day to Argentina s supply system. From left, CESVI auditor Marcos Antonio Carvalho, Afonso Memede and Sérgio Ricardo Fabiano, CESVI CEO for Business odebrecht archive Argentina II In addition to installing the gas pipeline in 11 sections between Santa Cruz Province and Buenos Aires, the contract also includes the construction of four compressor plants along the pipeline s route. Valued at USD 350 million, this project will involve 2,000 workers at the peak of construction. This EPC (Engineering, Procurement and Construction) project is financed by Brazil s National Bank for Economic and Social Development (BNDES), which issued a USD 227 million loan. Begun in May 2010, it is scheduled for delivery by October ODEQ, the Group s equipment arm, gets certification Odebrecht is the first engineering and construction company to have its equipment shop certified by the Center for Experimentation and Road Safety (CESVI) and the Institute of Automotive Quality (IFQ). The certificate, presented to Afonso Mamede, Odebrecht s Equipment Director, covers the areas of environmental and automotive services. Its achievement was made possible by changes made to the Odebrecht Equipmentos Odeq workshop in Guarulhos, São Paulo. Its entire infrastructure was adapted to the certifying institutions requirements, including the installation of new equipment and signage. In addition, changes were made in the areas of safety, environment and training to comply with the certification standards. Knowledge Communities I The leaders of Odebrecht s Knowledge Communities held a meeting on March 8 to assess the activities that have worked well and those which did not achieve the expected results in They also introduced the Communities Action Program for This was the second annual meeting of the Knowledge Communities leaders, and the first time it was held remotely through audioconferencing, involving 15 people in 11 different locations. Knowledge Communities II The Second Meeting of the Contract Management Community took place in the same month, on the 25th and 26th, chaired by Wagner Marangoni. The opening speaker was Paulo Lacerda, Odebrecht s Vice President for Operations. The event was attended by 90 participants from 10 countries and outside guests such as attorney Marcelo Ferro and insurance executive Ernesto Tzirulnik. Odebrecht entrepreneurs presented case studies on claims, different kinds of projects and alternative methods for solving controversies, among other topics. The presentations are available online at com/comunidades.

6 04 transportation Every single meter matters The Rota das Bandeiras concessionaire marks the first year of operations of the D. Pedro I road corridor in São Paulo State, a period of crucial improvements to those roadways written by José Enrique Barreiro / photos by Guilherme Afonso D. Pedro I Highway: in one year, the concessionaire s team has restored paving, installed new signaling systems and repaired bridges and overpasses On April 3, 2009, the Rotas das Bandeiras concession company took charge of operations of the D. Pedro I road corridor in São Paulo State a total of 297 km of roadways. A year later, the results are clear for all to see, including drivers and passengers of the 118,000 vehicles that use those routes: signaling systems including new signs and painted roads, trimmed trees, pruned hedges, and crucial services for motorists such as towing, ambulances and tollfree emergency telephone numbers. When we took charge, we prioritized the emergency restoration of these roadways to ensure greater safety and comfort for their users, says Luiz Cesar Costa, General Director of Rota das Bandeiras. TRUCKERS SPEAK THEIR MIND The assessment of people who use the route on a regular basis So good it s great Jaime Ribeiro de Carvalho, from Sengés, Paraná, drives 4,000 km per week and 16,000 km per month. He uses the D. Pedro I highway every week. I load up my truck in Paraná, drive through Campinas, make my delivery in Belo Horizonte, then turn around and go back again, says Jaime, who transports rolls of paper. He says that before the concessionaire arrived, his truck used to rattle on that route, but that situation has improved. He praises the signaling and service stations and sums up his feelings this way: This here s so good it s great. Jaime Getting better bit by bit Edmilson Arantes de Souza was in trouble he had blown the right front tire of his truck. He drove another 500 m before pulling over onto the shoulder. Ten minutes later, Rota das Bandeiras traffic inspector Ernesto José Binatti was there to give him a hand. Edmilson drives the Atibaia-Campinas route every day, trans-

7 Numbers for year one > Roadworks 1,280 km of horizontal signaling 157,000 cat s eyes installed 2,088 vertical signposts installed 8,040 m of metal protective barriers 297 km of pavement refurbished 321 repairs to bridges and overpasses > Equipment 36 new vehicles (transit inspection vehicles, ambulances, tow trucks and trucks) Today, the concession company operates four user service stations that are linked to the Operational Control Center (CCO), which is responsible for a fleet of 12 tow trucks, 12 transit inspection vehicles, eight ambulances, two water trucks and two animal control vehicles. These services are provided 24 hours a day, every day of the week, including holidays. The D. Pedro I corridor runs through 17 counties that are home to 2.5 million people. The most important route connecting the Campinas Metropolitan Region and the Paraíba Valley Region, D. Pedro I highway is 145-km long and connects with three major routes the Carvalho Pinto, Dutra and Fernão Dias highways. The corridor also includes four more roadways. Rota das Bandeiras, an Odebrecht Group subsidiary, tendered the winning bid to operate the corridor as a concession for 30 years. During that period, BRL 3.4 billion will be invested in infrastructure, facilities and the concession itself. BRL 879 million were invested in the first year alone. Edmilson (left) and Ernesto D. Pedro I Road Corridor porting a variety of products, and says it wasn t the highway s fault ( That tire was way too old ). He underscores how quickly Binatti arrived to help him out, and praises the overall quality of the route. His only complaint is that one of the four lanes still needs repaving, but he knows that it will take more than a year to get everything done. It s getting better bit by bit.

8 06 peru The start of a new era Completed projects and new contracts and concessions mark a new phase in Odebrecht s operations in Peru written by Leonardo Maia / photos by Lalo de Almeida

9 Port of Bayóvar: project built for CVRD, an Odebrecht partner in Brazil and worldwide In 2001, Odebrecht Peru had 460 members and a backlog worth USD 3.1 million. But by the end of 2009, the number of company members had soared to 8,000 and its backlog had surpassed USD 520 million. The projection for earnings in 2011 is in excess of USD 1 billion. According to Jorge Barata, the CEO of Odebrecht Peru, this growth reflects the economic boom underway in that Andean country. These developments have more to do with Peru than Odebrecht. This phenomenon has taken place continuously since The country s economy has always grown more than 6% per year, which fuels the growth of companies that are committed to this country s development. One of the busiest sectors is the port industry, where Odebrecht has won three contracts in recent years. The Port of Melchorita is now exporting natural gas through Peru LNG, and Odebrecht will deliver the South Mole in the Port of Callao in the second half of 2010, under contract to Dubai Ports World (DP World). The company is also building the Port of Bayóvar for CVRD, so the Brazilian mining giant can use that facility to ship out its phosphate production, which is used to make fertilizers. These private-sector projects have made Odebrecht Peru the first choice of a wide range of clients. Today we are highly competitive in the area of port construction, thanks to our outstanding technology and logistics, as well as our capacity to groom a skilled workforce. Eight other ports could potentially be built, and we are keeping a close eye on that process, explains Jorge Barata. In Bayóvar, northern Peru, the biggest challenges were building an access bridge and the port itself using perforated concrete piles, installing the electromechanical structures that convey phosphate to the port, and the tight deadline: just 16 months. Working with CVRD is always a challenge because they are a highly demanding client. Furthermore, CVRD is an important ally for Odebrecht in Brazil and worldwide, which redoubles our responsibility, says Project Manager Allan Abrantes. Concessions In addition to the three port projects, Odebrecht Peru s teams are hard at work on the final stages of three highways. Two of them are part of the

10 The Electric Train works in Lima: Odebrecht s first project in the nation s capital Odebrecht's Projects in Peru *Contracts in the tender process. IIRSA (Initiative for South American Regional Infrastructure Integration) Program, which will increase the integration of Brazil and Peru. Both 25-year concessions, the IIRSA South and North routes are priority projects for the country s growth. In recent years, Peru has built a large number of roads, breaking all records, because it needs a highway system to sell its products at competitive prices, observes Jorge Barata. Also in the field of concessions, Odebrecht is facing one of the biggest challenges in all its 30 years of experience in that country: the Trasvase Olmos Project. The diversion of the Huancabamba River to the Olmos will take water from a region blessed with greater rainfall to a 43,000-hectare area of desert and benefit thousands of people. The company s teams are using a TBM (Tunnel Boring Machine) to dig a 20-km tunnel through the rock formations of the Andes, which tower as high as 2,000 m. When the last 4 km have been excavated, Concessionária Trasvase Olmos will transport 400 million cu.m of water per year. Once that phase has been completed, the Olmos Project will involve two other components: irrigation and hydroelectric power generation (the tender for the latter has not been scheduled). Through Concessionária H2Olmos, Odebrecht has tendered a bid to irrigate a vast area. The company will finance the entire project. Land now belonging to the government will be auctioned off, and lots covering a minimum of 1,000 hectares of land will be sold to large companies, totaling 38,000 ha in all.

11 Olmos Project tunnel: water for semi-arid areas Another 5000 ha will be allocated to social programs, benefiting small farmers like Segundo Benítez. A villager in Casario del Muerto, he belongs to a fruit-growing cooperative and needs water to irrigate his crops, but now it is only available in artesian wells. With water from the Olmos Project, this cooperative can grow, explains Benítez, the father of five. The main benefit of the irrigation component will be directly creating 76,000 jobs, observes Olmos Project Director Maurício Cruz. It will also form a strong supply chain, indirectly creating even more work opportunities. This region will probably achieve full employment, similar to what happened in the Trujillo region, where we built another irrigation project called Chavimochic, he adds. First project in the capital Odebrecht Peru is also breaking ground for more new projects, in addition to the irrigation component of Olmos. One is the Electric Train, which began 20 years ago under the responsibility of another firm, and will be completed by a joint venture formed by Odebrecht and Graña y Montero. In addition to modernizing the 9-km electromechanical system already in place, the joint-venture contractor is building another 12-km section in Lima. This is a new experience for Odebrecht, because it is our first project in the capital. It is also a priority, because traffic and mass transportation in Lima require new solutions. Our biggest challenge is to complete the Electric Train project in 18 months, when it would usually take 36 months, explains Project Director Carlos Nostre. Another project that will begin this year is a Public-Private Partnership, the Chaglla hydroelectric plant, which will have a generating capacity of 460 MW. Located in central Peru, it will go online by July Odebrecht also has its eye on another six hydropower projects and is studying the 1,085-km South Andean Pipeline works. The market requires it. Plus, we are studying the mining sector, which involves a USD 20-billion investment, and water and sewer projects in partnership with Foz do Brasil, as well as opportunities to work on irrigation and road projects. Our strategy is to build up an increasingly diverse and significant range of projects, says Jorge Barata. Odebrecht s growth reflects the boom underway in Peru [ Jorge Barata ]

12 10 retranca buildings New times for state government Presidente Tancredo Neves Administrative City in Belo Horizonte, Minas Gerais, centralizes public services to make them more economical and efficient written by Zaccaria Junior / photos by Eugênio Sávio On March 4, 2010, the centennial of the birth of former Brazilian President Tancredo Neves, his grandson and then-governor of Minas Gerais, Aécio Neves, inaugurated Presidente Tancredo Neves Administrative City in the state capital, Belo Horizonte. Designed by legendary architect Oscar Niemeyer, this modern complex of buildings is now the seat of the state government, including 18 departments and 25 agencies. A survey conducted by the Department of Government Planning and audited by BDO Trevisan estimates that the newly centralized administration (formerly the state government s offices were widely dispersed, with over 50 different addresses) will produce a savings of BRL 92 million in 2010 alone. A stroll through the halls of one building, called Gerais, built by a joint venture led by Odebrecht, makes it clear that this is a hightech facility, and the 16,000 civil servants who will begin using the entire complex in stages later this year will have cutting-edge facilities at their disposal. The works for the Administrative City were divided into three lots. Gerais was Lot 2. Aside from its dazzling architecture, the complex boasts advanced lighting, water and ventilation systems, a modern data transmission network and other advances that will give greater flexibility and reliability to the state government s administrative procedures. This was made possible by the work of a team of competent, dedicated and united professionals who pursued a single goal, says Fernando Ribeiro, the director of the joint venture led by Odebrecht.

13 The Administrative City and, in the inset, the Gerais building: architectural dazzle and advanced technology Presidente Tancredo Neves Administrative City is considered the third pillar in Minas Gerais s Plan for Integrated Development (PMDI), which aims to ensure economic growth and social progress in that state between 2003 and The other two pillars, or structuring projects, are called Management Shock: People, Quality and Innovation in Public Administration and Modernized Tax Collection. A native of Diamantina, Minas Gerais, President Kubitschek s hometown, Odebrecht CEO Sérgio Neves observes: It s fantastic for us at Odebrecht to play a role in fulfilling this dream. It s been a long time since we ve seen a project like this around here, he says, thinking back to the day, about 70 years ago, Centralized government should produce an annual saving of BRL 92 million as of 2010 when Kubitschek, then mayor of Belo Horizonte, commissioned the young and already renowned architect Oscar Niemeyer to build the Pampulha architectural complex, also located in the northern part of the state capital. In a video produced to publicize the project, Niemeyer waxed nostalgic: It feels like we re going back to the days of JK (Juscelino Kubitschek). The same enthusiasm, the same drive to get things done, even optimism. That s what I like.

14 12 profile Blood, sweat and toil written by Miucha Andrade / photo by Holanda Cavalcanti I ve always been a fighter, says José Carlos Teixeira, 39, Industrial Manager of ETH Bioenergy s Morro Vermelho Unit, and São Paulo s five-time jiu-jitsu world champion and vice champion. He has been with the Group for a year and a half, and quickly identified with the principles and concepts of the Odebrecht Entrepreneurial Technology (TEO), such as discipline, confidence in people and Education through Work. Some people say he is full of energy; others describe him as a can-do kind of guy. A native of the southeastern Brazilian state of Minas Gerais, Zé Teixeira has degrees in Biology and Chemical Engineering and believes in three things in life: blood, sweat and toil. Driven by adrenaline, he worked on his first plant construction project at the age of 29. He got a bachelor s degree in Sugar-Ethanol Management and an MBA from the University of São Paulo (USP) but never gave up his athletic side. When he was living in Campo Florido, Minas Gerais, he started a social program to teach jiu-jitsu to local children. It was a way of instilling values like respect, discipline and persistence. In 2009, he and his family moved to Presidente Prudente, São Paulo, where he helped build ETH s Conquista do Pontal (UCP) Unit in the record time of 13 months. Just before the UCP was due to open, a powerful storm wrecked the tent where the ribbon-cutting ceremony was to be held. Zé Teixeira mobilized his team in the middle of the night, and during the next 24 hours he led the effort to move 40 tonnes (metric tons) of industrial equipment. It was a memorable episode, he says. An example of full dedication, where everybody does his best. Then, when Zé Teixeira was invited to set up ETH s new industrial units in the states of Goiás and Mato Grosso, he moved to the town of Mineiros, 420 km from Goiás s state capital, Goiânia. He travels 730 km every two weeks to see his wife and children, and still finds time to practice jiu-jitsu on weekends. You have to train and fight to be a winner. Results don t just fall in your lap, he says.

15 13 Art in her DNA Ilu is immersed in Miami s cultural scene Born in Manágua, Nicaragua, ilu rivera moved to the United States with her family when she was seven. Her grandfather was a cultural ambassador of UNESCO. A graduate of Miami s renowned New World School of the Arts, she keeps in close touch with cultural trends. In Miami, Ilu and her husband, Ramon Arbesu, are regular patrons of the Adrienne Arsht Center Theater, built by Odebrecht, and the Vizcaya Museum. It is one of the oldest museums in the city, says Ilu, who joined the Group four years ago and is now on the direct team of Gilberto Neves, Odebrecht s CEO in the United States. Empathy and positive results Sandro loves his job and city Denise Cruz Dario de freitas Responsible for managing the water and sewer services that Foz do Brasil provides to the 270,000 residents of Limeira, São Paulo, sandro stroiek loves his city, company and job. Foz do Brasil s experience in Limeira is a first. It began in 1995 and has become a national and international benchmark because it is a viable way to provide universal sanitation services, says Sandro, who holds Philosophy and Business degrees. The results are the outcome of a process of constant improvement whose main motivation is ensuring our clients total satisfaction and interacting with the community. We seek to meet everyone s needs. A story that is just beginning Marco has overcome personal challenges and realized dreams Although he is just 39, marco manuel roquete ramos is a seasoned veteran at Bento Pedroso Construções (BPC). He joined the Portuguese company as an office boy in 1987, when he was 17. Over the course of a decade, he worked on numerous projects, but when he was 27 he decided to leave BPC in search of a job opportunity that would let him live closer to his family. But two years later, a serious accident left him paraplegic. The shock and anger naturally felt by victims of such incidents soon gave way to a strong sense of determination. Marco decided to fulfill his dream of getting an architectural degree. Today, he has an MA in Architecture and is back at BPC. I am very happy to be here again, among so many dear friends. I feel right at home. Marco is also devoted to ensuring accessibility in the town of Cascais, where he lives. My life story hasn t been written yet. It s just beginning. Holanda Cavalcanti

16 14 energy The plant takes shape Construction of the Santo Antônio hydroelectric plant on the Madeira River in Rondônia, Brazil, is speeding along so it can generate power ahead of schedule written by Luiz Carlos Ramos / photos by Roberto Rosa

17 A massive concrete dam is growing and gaining shape on the Madeira River, just 18 months after ground was broken. Today, 10,295 company members are working to meet deadlines and ensure quality in the construction of one of the world s largest hydroelectric power stations: the Santo Antônio plant, in the Brazilian state of Rondônia. On the left bank of the river, the Amazon s largest tributary, the construction site and rain forest dominate the landscape. On the right bank, we see Porto Velho, a growing city whose economy is gaining power as the future plant becomes a reality. The project is scheduled for completion by 2015, but expectations are that the first of its 44 turbines will start generating power by the end of The plant will have an installed capacity of 3,150 MW. Energy will be distributed not only to northern Brazil but to other regions through the transmission line that will be installed to connect Porto Velho with Araraquara, São Paulo, where the new plant will be integrated into the Brazilian power system. Harnessing the Madeira River When Brazil faced an energy crisis in 2001, Odebrecht conducted studies that indicated the possibility of building four power plants to develop the Madeira River s hydroelectric potential. Engineer José Bonifácio Pinto Júnior, who has a long list of hydroelectric projects on his résumé and is now CEO of Odebrecht Energy, has worked on this project from the start. Construction of the Santo Antônio project began in September 2008 and is continuing at an impressive pace, so we can confirm that the established deadlines will be met. The environmental license for Santo Antônio was issued in July Five months later, Consórcio Madeira Energia, a consortium led by Odebrecht and Furnas, tendered the lowest average tariff for power to be generated and won the auction for the concession to build and operate the facility. The Santo Antônio Energia company was established to operate the plant for a 30-year period. Consórcio Construtor Santo Antônio (CCSA), a joint venture led by Odebrecht Engineering & Construction and also made up of Consórcio Santo Antônio Civil (Odebrecht Engineering & Construction and Andrade Gutierrez) and Gicom Grupo Industrial do Complexo do Rio Madeira (Alstom, Bardella, Voith Siemens, Andritz and Areva). Odebrecht Engineering & Construction is responsible for electromechanical installation. CCSA is the largest employer in the North of the country and the 42nd-largest in Brazil. Building a power plant on one of the main rivers in the Amazon, close to the rain forest, requires special solutions. The decision to use bulb turbines, for example, ensured that the environment will not suffer a more significant impact. The verse The interior will become the sea, it hurts the heart, from a song by Sá, Rodrix and Guarabyra, is about the the Sobradinho plant, built on the São Francisco River in the state of Bahia between 1973 and 1979, which flooded a 4,214-sq.km area. In the case of the Santo Antônio plant, the flooded area will only cover 217 sq.km, of which 164 sq.km are in the riverbed itself. Some of the families living in the area affected by the project have been resettled by Consórcio Santo Antônio, and others have received financial compensation. Mário Lúcio Pinheiro, the Project Director and officer responsible for civil construction works at Consórcio Santo Antônio Civil, is a native of Uberaba, Minas Gerais, and has lived in Porto Velho along with his family since Sitting in his office, which is full of maps and schedules, he observes that unity and team spirit have had a decisive influence on this project: Dealing with a multicultural team requires face-to-face, frank and honest dialogue. The biggest challenge isn t building a hydro but constructing a unit. We have to work as a unified team. The construction works are on both banks of the river, and go on around the clock, every day but Sundays, which are set aside for equipment maintenance. The current priorities are the powerhouse on the right bank, to ensure that the plant will generate energy by the end of next year, and the spillway on the left bank, which will make it possible to divert the Madeira in a year s time. Luiz Gabriel Todt de Azevedo, from Odebrecht Energy, is responsible for the

18 Sustainability area. He underscores the Santo Antônio plant s role in local socioeconomic development, combined with environmental protection. He says that the consortium has gone well beyond meeting legal requirements and mitigating impacts: Our goal is to promote social and economic gains for the local communities, as well as providing real opportunities for environmental conservation. In February, at a seminar in Washington, DC, in the United States, Luiz Gabriel emphasized: Brazil can prove that it has learned from the past and will make Santo Antônio a benchmark for social and environmental performance in the future development of the energy potential of Amazonian rivers. Odebrecht has decided to carry out a groundbreaking initiative at Santo Antônio that is a first in Brazil and rarely found in other countries: estimating greenhouse gas emissions (GGE). As Luiz Gabriel explains: This was a voluntary program. There are no ready- Dealing with a multicultural team requires face-to-face, frank and honest dialogue [ Mário Lúcio Pinheiro ]

19 Opposite page, top, activity from the practical module of the Acreditar Program; below, a boat on the Madeira River takes workers to the jobsite. On this page,the team in action, building the dam made methods for estimating the carbon footprint of major infrastructure projects like power plants. So we developed our own method. These estimates gauge the amount of emissions produced by all the activities involved in the construction project, including civil construction and installation. The main sources of emissions were identified and their impacts quantified. The study revealed that at Santo Antônio, most emissions come from fuel consumption by machinery and equipment. Emission-reducing measures based on these findings are now being taken. A massive project like Santo Antônio requires a large contingent of skilled workers. At the same time, giving priority to local hiring is also key. Based on these two givens, the Ongoing Professional Qualification Program Acreditar (Believe) was created in January Of the 10,295 workers mobilized for the project, almost 98% (10,063) originated from that program. They now have a new profession, which means social inclusion and a better quality of life. Antônio Cardilli, 47, has been with Odebrecht for 30 years. This dam builder collects rocks from all the plants he has worked on: six, altogether. This one is from right here, he says, pointing to a grey pebble. He joined the Group when he was 17, and feels that he has reached the most gratifying phase of his career. I came here on January 14, 2008, to set up the office. The Administrative/ Financial Manager for the project, Cardilli is also the coordinator of the Acreditar Program, his brainchild, which in two years has trained 25,000 professionals in the state of Rondônia. Over 8,000 are now working on the Santo Antônio project. They include bricklayers, carpenters, steelfixers, vibrator operators and drivers, among other specialists. The program has spread from Rondônia to other parts of Brazil and is being introduced in projects in other countries.

20 Jobsite kitchen: supplying food to three restaurants Rubens Gonçalves da Silva, or Rubinho, is from Maringá, Paraná, has lived in Porto Velho for eight years, and was one of the first professionals to graduate from the Acreditar program. Today he is a light-vehicle driver. Previously, I rode a bicycle and didn t have any future prospects. Thanks to my new job, I have a better life and my daughter, Edivânia, has taken the Business Administration course. A significant number of women are involved in the construction of the Santo Antônio Plant, representing over 10% of the total workforce a record, because that figure had never surpassed 2% before on most heavy construction projects in Brazil. Elissandra Regina Cavalcanti is another Acreditar graduate. She operates a hydraulic excavator. Better known as Nenê, Elissandra, 33, is from Porto Velho. She has played on the São Paulo and Brazilian women s soccer teams, and competed in the Sydney Olympics in I like a challenge, she says. I think it s beautiful that women have jobs that were once just for men. In soccer and right here. Arlenicen Batista Gomes, 38, is a native of Goiás, and graduated from Acreditar as a carpenter in June 14, She is a widow with seven children. My life was very hard, but it s different now. Her eldest son, aged 16, is taking part in the Acreditar Junior program. Acreditar Junior is the son of Acreditar, designed for the teenage children (aged 14 to 17) of Consórcio Santo Antônio Civil members. They stay in school and take basic and technical classes in partnership with the SENAI (National Industrial Apprenticeship Service). Over 400 young participants have already received a uniform, backpack and educational materials. They each get 50% of the monthly minimum salary, which is currently BRL 510, and take part in activities designed to develop civic spirit. Geisiele Gonçalves, 15, one of Rubinho s daughters, is also participating in Acreditar Junior. I ll help build the hydroelectric plant one day!, she says. Feeding over 10,000 workers is the challenge for Hédio Perdomo, the Food Business Manager, who is responsible for the kitchen and supplies meals to the jobsite s three restaurants. A survey found that 98% of the workers Four tonnes (metric tons) of meat per day. Breakfast and lunch for 6,000 people per meal, dinner for 4,000 people and snacks for 3,300. In the kitchen, 225 company members prepare food and clean the facilities are satisfied with the food, says Hédio, who has 230 people on his team, including five nutritionists. A Carioca (born in the city of Rio de Janeiro), Hédio worked for the Brazilian Navy before joining Odebrecht in We make sure there s protein, such as beef and chicken, as well as rice and beans, he explains. We consume four tonnes (metric tons) of meat per day, for example. He and his team serve breakfast and lunch for 6,000 people per meal, dinner for 4,000 people and snacks for 3,300. In the kitchen, 225 company members prepare food and clean the facilities, which are always spotless. Consórcio Construtor Santo Antônio s Institutional Relations Manager is Valdemar Camata Júnior. Born in the state of Espírito Santo, he has a degree in Economics and has lived in Rondônia for 30 years. Valdemar observes: Rondônia has gone through several economic cycles, including the rubber boom and the construction of the Madeira-Mamoré railway, the gold rush, and the arrival of farming and ranching. Now the energy cycle has arrived. Thanks to the Santo Antônio project, there has already been a great deal of progress. Thanks to energy, this young state will be able to grow much more in the fields of industry, commerce and tourism.