This paper presents the results of a P&D research developed by the Universidade Federal de Pernambuco (UFPE) for the Compahia Energética de Minas Gerais -CEMIG, entitled "Developing a tool to monitor and evaluate the economic, social and environmental sustainability of municipalities in the areas of influence around dams". In Brazil, the construction of large dams for hydropower plants generates transformations that cause conflicts of interest at national, regional, local and sector levels. In the areas of direct influence around power projects there are negative social and environmental impacts, particularly where populations have been displaced. Nonetheless, benefits are also brought to the region in which the energy is produced, and the power sector is interested in maximizing such benefits, while minimizing the negative impacts on the implementation area, particularly in the Amazon region. Thus, the critical challenge is how to measure such changes in an effective manner. Many multilateral institutions have undertaken efforts to produce tools to this end. This paper presents the Index of Sustainable Regional Integration (ISRI), a tool for monitoring and evaluating the regional integration of hydropower plants, based on a system of indicators covering the four main dimensions of sustainable development: environmental quality, socio-cultural quality, economic development and quality of public management.
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