Developer of Brazil’s 3,150-MW Santo Antonio sells third of power

Development consortium Madeira Energia S.A. said April 27 that it closed the sale of 30 percent of the power to be generated by the 3,150-MW Santo Antonio hydroelectric project being developed on Brazil’s Madeira River.

Consortium President Roberto Simoes said an unidentified large generation and distribution company agreed to pay 7.5 billion reais (US$3.3 billion) for the power for 15 years beginning in December 2012.

Madeira Energia won a 2007 concession auction to develop Santo Antonio by bidding to sell 70 percent of the project power to 32 distribution utilities for 78.87 reais (US$35.50) per MWh, a 35 percent discount compared with the auction’s price cap of 122 reais (US$54.91). (HNN 12/10/07) The government allowed the remaining 30 percent to be sold in the open market.

In December, Brazil’s national development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES), approved 6.1 billion reais (US$2.7 billion) in financing for construction of Santo Antonio by Madeira Energia S.A. (HNN 12/30/08) The consortium includes Furnas Centrais Eletricas S/A, Odebrecht Investimentos em Infra-estrutura Ltda., Construtora Norberto Odebrecht S.A., Andrade Gutierrez Participacoes S/A, Cemig Geracao e Transmissao S/A, and Fundo de Investimentos e Participacoes Amazonia Energia (formed by banks Banif and Santander).

Santo Antonio is to have a total of 44 turbine-generators of about 72 MW each, the first starting up in May 2012. The investment is to create 21,700 jobs and supply power to 15 million people.

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