Brazil’s electricity regulator has recommended a 20-year extension of a concession held by Companhia Energetica de Sao Paulo (CESP) to operate the 1,540-MW Sergio Motta hydroelectric project.
The recommendation by Agencia Nacional de Energia Eletrica (ANEEL) comes as the Sao Paulo State government is resuming its plans to sell its major stake in the hydropower utility. (HNN 1/2/08)
CESP’s current 30-year concession for Sergio Motta, previously known as Porto Primavera, expires in May 2008. The project is located on the Parana River in Sao Paulo and Mato Grosso do Sul states.
ANEEL made the recommendation to Brazil’s Ministerio de Minas e Energia, the granting agency. ANEEL said the extension is foreseen by Brazilian law and by the generation concession contract with CESP.
Sao Paulo State in December it plans to sell off its stake in CESP, the third-biggest power generator in Brazil, which owns more than 7,000 MW of hydropower, in the first quarter of 2008. It has opened a data room for potential purchasers.
In an auction on the Bovespa stock exchange, Sao Paulo plans one offering of voting and B-class preferred shares. The state government holds, directly and indirectly, 95 percent of ordinary voting shares in CESP and about 18 percent of B-class preferred stocks, amounting to a total stake of 43.3 percent in the company.
CESP’s other hydro projects include 3,444-MW Ilha Solteira, 1,551-MW Jupia, 808-MW Tres Irmaos, 86-MW Paraibuna, and 28-MW Jaguari.