Brazil’s electricity regulator has rejected an appeal of the May concession auction for construction and development of Brazil’s 3,300-MW Jirau hydroelectric project.
Losing consortium Consorcio Jirau Energia, led by federal utility Furnas Centrais Eletricas S/A, filed an appeal June 27 with electricity regulator Agencia Nacional de Energia Eletrica (ANEEL), citing documentary irregularities in the application of winning bidder, Consorcio Energia Sustentavel do Brasil (CESB), led by a unit of French utility Suez. (HNN 7/3/08)
The losing group also complained that CESB announced it plans to move the project nine kilometers from its original location as a way to save 1 billion reais (US$626 million).
ANEEL said it analyzed presentations of both consortia and ratified the auction results.
CESB won the eight-minute electronic auction May 19 to develop Jirau on Brazil’s Madeira River. It offered an electricity sale price of 71.40 reais (US$43.26) per megawatt-hour, a 22 percent discount from the price cap of 91 reais (US$55.13).
Consorcio Energia Sustentavel do Brasil includes:
o Suez Energy South America Participacoes Ltda., a unit of French utility Suez, (50.1 percent);
o Eletrosul Centrais Eletricas S/A (20 percent);
o Companhia Hidro Eletrica do Sao Francisco (CHESF) (20 percent); and
o Camargo Correa Investimentos em Infra-Estrutura S/A (9.9 percent).
The losing group, Consorcio Jirau Energia, includes:
o Federal utility Furnas Centrais Eletricas S/A (39 percent ownership);
o Fundo de Investimentos e Participacoes Amazonia Energia II (comprising banks Banif and Santander) (20 percent);
o Odebrecht Investimentos em Infra-Estrutura Ltda. (17.6 percent);
o Construtora Norberto Odebrecht S/A (1 percent);
o Andrade Gutierrez Participacoes S/A (12.4 percent); and
o Cemig Geracao e Transmissao S/A (10 percent).
Consorcio Jirau won a concession auction in December for Jirau’s sister project, 3,150-MW Santo Antonio, also on the Madeira River.