Bidder pulls out of Belo Monte dam

Odebrecht and Camargo Correa have reportedly pulled out of the bidding process for the US$ 10.7 billion Belo Monte hydroelectric power project.

Their withdrawal leaves only one bidder in the running.

Local news reports say the two companies pulled out of due to concerns about the auction process for the contract and the financial viability of the project.

They were expected to form a joint venture for the construction of the 11 GW power plant on the Xingu River in Brazil's northern state of Para.

The only remaining group interested in taking on the scheme is a consortium comprising energy companies Votorantim Energia and Neoenergia, contractor Andrade Gutierrez, and mining company Vale.

The Brazilian government had hoped grant the contract following a competitive auction, and it is now reported to be encouraging other companies to enter the tender process.