Brazil utility files environmental report on three-project rehab

Brazil federal utility Furnas Centrais Eletricas S.A. has submitted an environmental report to the Inter-American Development Bank (IADB) as part of the utility’s request for a loan to rehabilitate three Brazil hydroelectric projects totaling 2,742 MW.

IADB is in preparatory stages of the proposed loan to Furnas to refurbish the 1,216-MW Furnas, 476-MW Mascarenhas de Moraes, and 1,050-MW Luiz Carlos Barreto de Carvalho hydroelectric projects, all on the Grande River in Minas Gerais State. (HNN 4/24/08)

The environmental report is an IADB requirement for the release of funds for the modernization program. IADB previously said it was considering a proposal to lend US$273 million to the total US$415 million project. However, in its most recent operational summary of the loan proposal, it said the loan amount is US$81.9 million.

If approved, the work would include renewing obsolete equipment and switchyards with the goal of recovering their generating capacity and increasing their reliability and operational flexibility.

The environmental report is available on Furnas’ Internet site, www.furnas.com.br.

In 2005, Furnas named a consortium of Alstom, Camargo Correa, Engevix Engenharia, Construtora Norberto Odebrecht, CNEC Engenharia, and GE Hydro-Inepar to modernize turbines and implement remote operation of Barreto de Carvalho, working through 2010. Voith Siemens Hydro Power Generation previously was commissioned to modernize generating units of the Furnas hydro project.

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