The dam was constructed in order to provide electricity to plants involved in the processing of bauxite into alumina, and later into purer aluminum metal. These plants were operated by , the Suriname Aluminum Company, which is a daughter company of Alcoa. About 75% of the dam's electricity was used to power these plants, and the portion of the electricity produced by the dam was used to power Suriname's capital city, Paramaribo. Other advantages of the dam's construction, besides a boost to the aluminum industry, have included the development of the country's inland areas and the surrounding forests, the pushing back of the saltwater boundary in the Suriname River, better irrigation capabilities during times of drought, an increase in tourist activity, and an increase in ease of fishing.