Prosecutors say the June deal was based on politics alone, and will result in major environmental damages, including illegal logging and ranching.

The 3.45-gigawatt (GW) Jirau dam, being built on the Madeira River in the state of Rondônia, was relocated 9km downstream from its original planned site, despite not having the required environmental licence.

The new plans would result in the flooding of 600 hectares of the ‘Rio Vermelho A’ state forest.