International energy company GDF Suez (GSZ.FR) and its Brazilian partners were approved for a loan of 7.2 billion reals ($3.09 billion) for their new Amazon hydroelectric dam, Brazil's government-owned BNDES bank said in a press release.

Brazil's National Development Bank, known as BNDES, approved the loan for construction of the Jirau power plant, a massive 3,300-megawatt hydroelectric dam located on the Madeira River in Rondonia state.

The Jirau project is one of Brazil's largest ongoing power projects. It is expected to be operational by 2012 and is part of the government's Accelerated Growth Program to create infrastructure-related jobs, especially in the underdeveloped northern half of the country.

Part of the BRL7.2 billion will come directly from BNDES, while around BRL3.6 billion will come from BNDES and partners, including federally owned Banco do Brasil (BBAS3.BR), Unibanco (UBB) and Bradesco (BBD), among others. BNDES retains 68.5% of that half of the loan.

GDF Suez won the rights to build and operate the Jirau power plant together with its construction partner, Camargo Correa, Eletrosul and Companhia Hidro Eletrica do Sao Francisco, better known as Chesf.

The dam is located around 127 kilometers from Porto Velho, the capital city of Rondonia in Amazon's western corner.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-8812-5961, kenneth.rapoza@dowjones.com