Brazil to build two hydro plants with neighbors

RIO DE JANEIRO, March 10 (Reuters) - Brazil has decided in principle to build two hydropower plants along its borders with Bolivia and Argentina, the country's energy minister said on Monday.

"The political decision has been taken ... we're studying when they will be built," Energy Minister Edson Lobao told reporters in Rio de Janeiro.

The two plants are to have a combined capacity of 12,000 megawatts, Lobao said.

Ministers from the three countries will meet this month to discuss the plans, Lobao said.

Brazil is already building two large hydroelectric plants along the Madeira River, near the Bolivian border.

The government was forced to put in service thermoelectric plants fired with fuel oil in January to help reduce the risk of an energy shortage due to insufficient water levels in the country's reservoirs.

Since then strong rains have improved water levels. Hydropower provides the bulk of Brazil's electricity. (Reporting by Rodrigo Gaier, Writing by Raymond Colitt; Editing by Christian Wiessner) ((ray.colitt@reuters.com ; +5561 3426-7021; Reuters Messaging: ray.colitt.reuters.com@reuters.net))