Chile Approves Plan For Hydroelectric Dam

Brushing aside opposition from environmentalists and Indians, the government Monday approved construction of a $45 million hydroelectric plant in southern Chile.

The Central Ralco plant, with its planned 460-foot-high dam, will force the relocation of about 600 Pehuenche Indians living by the Bio Bio River, 310 miles south of the capital, Santiago.

The government’s National Environmental Commission said the plant complies with environment regulations.

The commission said in a statement that ENDESA, Chile’s largest power company and sponsor of the project, will be required to develop a 9,500-acre biological reserve along with the plant.