Social License to Operate: The Precursor Case of Success of Caçu and Barra dos Coqueiros HPPs

Delfim José Leite Rocha

Ferreira Rocha Advisory and Socio-environmental Services, Brazil

Abstract: The Social License to Operate (SLO) has stood out with entrepreneurs and financing agents as a structuring factor in their Risk Management strategies. However, SLO studies applied to the generation of hydroelectricity are still restricted, mainly in Brazil. In this context, this article evaluates the stakeholders’ engagement process during the first stage of the environmental licensing of the Caçu and Barra dos Coqueiros Hydroelectric Power Plants, in Claro River, State of Goiás. The analysis considers SLO key variables such as quality of dialogue, minimizing power asymmetries and procedural fairness with communities. It is concluded that the entrepreneur obtained the SLO concomitant with the so-called Preliminary License, which characterizes it as a precursor case of successful practice of the SLO precepts, even before they gained breadth of discussion in Brazil for different productive segments.

Key words: social license, stakeholders engagement, social risk management