Suez Energy International’s Latin American subsidiary has signed a 24-year loan agreement with Brazilian development bank BNDES for the Estreito hydropower plant, the largest power plant under construction in Brazil.
Suez Energy Latin America’s EUR380 million project financing arrangement benefits from the favourable financing conditions available under the Brazilian government’s Programme for the Acceleration of Growth (PAC). The 1087 MW, EUR1200 million project is expected to be on-line by 2012.
Estreito is being built by a consortium consisting of Suez Energy International (40.07 per cent), Vale (30 per cent), Alcoa (25.49 per cent) and Camargo Correa (4.4 per cent). BNDES’ investment will be placed in two parts – 50 per cent through a direct loan with the remaining 50 per cent to be raised through a group of banks: Unibanco, Bradesco, ItauBBA and Votorantim.
The Estreito concession was acquired by Suez Energy International and its partners in 2002. The plant is located on the Tocantins river, between the states of Tocantins and Maranhão, downstream from the 243 MW São Salvador hydro project, which Suez is also constructing, and Cana Brava, a 450 MW hydro plant owned by Suez subsidiary Tractebel Energia.
In October Suez auctioned 256 MW of Estreito’s output to distribution companies in the form of 30-year power purchase agreements. These contracts are worth EUR3.3 billion.
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