The loan will help Belo Monte dam concession owners, Norte Energia, the capital needed to make the required social and environmental investments in the area where the dam will affect local citizens most.
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The catchment area of the dam, once constructed, will be the key to the future of the project.
Mississippi officials were reportedly considering breaching a side of the dam that abuts a forested area in order to relieve pressure.
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But that is a third of the area that the original dam would have inundated.
He said the council was now bringing in specialist equipment to clear the area and engineers would rebuild the dam.
Mr Kejriwal said that water from the dam was also diverted to factories in the area, instead of being given to the farms.
The developers are setting aside money to resettle displaced villagers, restock the two affected rivers with fish, and manage a new wildlife reserve no less than nine times bigger than the area to be flooded by the dam.
No studies can be made if the dam is going to be located in a protected area.
The dam is thought to be about 450 acres in area.
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Whether the present dam projects go ahead or not, there is little doubt the area could see these kinds of developments in the future.
Mr Turner said the council had also built a 1m high dam near the culvert, which had improved water flow through the area.
The dam system accounts for 20 percent of the water used in Mexico City and its surrounding area.
The road will bear more traffic, the area more people (at least 6, 000 workers will be needed for the dam building at its peak) and this part of Patagonia will certainly lose its remote, lost-in-time feel.
Similarly, the elimination of Sandstone Dam on the Kettle River in Minnesota opened 30 miles for fish migration and revived recreation in the area.
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