Brazil's Institute of the Environment and Natural Resources, Ibama, has approved an installation permit for the 700-MW Sao Manoel hydropower plant, according to the country's state news agency.

Ibama had stymied progress on the US$1.13 billion project due to concerns about Sao Manoel's environmental impacts for about two years, causing developer Terra Nova to agree to adopt 37 environmental programs before receiving Ibama's approval.

Terra Nova -- a joint venture owned in equal thirds by EDP Energias do Brasil, state-owned utility Furnas and China's CWE Investment Corp. -- won a 30-year operating concession for the plant in an A-5 power auction this past December.

Sao Manoel will be located in Brazil's western Mato Grosso state on the Teles Pires River. The project is expected to begin operation in 2018.