Brazil’s national development bank has approved financing of 1.034 billion reais (US$593.8 million) for the 333.7-MW Simplicio hydroelectric project on Brazil’s Paraiba do Sul River.
Banco Nacional de Desenvolvimento Economico e Social (BNDES) said November 14 that it will provide 62 percent of the total project investment of 1.6 billion reais (US$918.9 million).
Utility Furnas Centrais Eletricas already holds an installation license to build the project in Rio de Janeiro and Minas Gerais states. The project includes a dam on the Paraiba do Sul at Tapir, where the 28-MW Tapir small hydro project will be built that will divert water through 10 kilometers of tunnels and canals to the Simplicio powerhouse. The project also includes a 120-kilometer transmission line enabling sale of power to the regulated market.
BNDES said the project will create 2,200 direct jobs and 6,600 indirect ones. Additionally, 264 million reais (US$151.6 million) of the project investment is to go to socio-environmental benefits.
Civil works are to be built by Norberto Odebrecht and Andrade Gutierrez. Argentina’s Industrias Metalurgicas Pescarmona S.A. (IMPSA) received a contract to equip the project. (HNN 1/16/07)