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Investment Partnerships Program - PPI

Hydropower plants: Brazil's Government receives more than R$ 12 billion with public sales

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27 de setembro de 2017

Hydropower plants: Brazil's Government receives more than R$ 12 billion with public sales

Leilao UHEs Foto ANEEL

Brazil's, National Electric Energy Agency (ANEEL) auctioned four hydroelectric plants, which are part of the Federal Government's Investment Partnerships Program (PPI), on Wednesday morning (27). The plants, qualified as a national priority in the energy sector, are: São Simão, Jaguara, Miranda and Volta Grande.

China's State Power Investment Corporation (Spic) bought the São Simão hydroelectric plant for R$ 7.180 billion, with a premium of 6.51%. The plant is located between the municipalities of Santa Vitória (MG) and São Simão (GO) and was completed in 1997. It has six  energy generating units and has an installed capacity of 1,710 MW.

In the boundary between the states of Minas Gerais and São Paulo, Jaguara Power Plant, was sold for the French company Engie, Brazil's largest private generator, for R$ 2.171 billion and 13.59% goodwill. Jaguara has 420MW of power and was completed in 1971.

Located in the municipality of Indianópolis (Minas Gerais state), the Miranda Plant was completed in 1998 and has three energy generating units and an installed capacity of 408 MW. Engie also bought this asset for R$ 1.360 billion and goodwill of 22.43%.

The Volta Grande Power Plant, located in the municipality of Conceição das Alagoas (Minas Gerais / São Paulo), was granted to the Italian energy company Enel, for R$ 1.42 billion and 9.85% goodwill. The plant was completed in 1974 and has four energy generating units and has an installed capacity of 380 MW.

According to PPI's special secretary, Adalberto Vasconcelos, these concessions are considered as one of the best investments of the Program. "Investors will have the opportunity to compete for highly profitable assets with immediate revenue streams. Not only the investor wins, but also the society wins with the improvement in the service," he points out.

The contracts have a term of 30 years and winner will be declared the bidder that offers the highest bonus amount for the grant, respecting the minimum value for each plant. The value of the Total Cost of Asset Management (GAG) is fixed.

Source: PPI

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