Agua Prata Small Hydro Power Plant

active

In January 2004, the Brazilian company Usina Eletrica do Prata Ltda, a partnership of Paineira Participacoes e Empreendimentos Ltda (66.5%) and several small local investors (33.5%), was granted the 30-year contract to build and operate the Agua Prata Small Hydro Power Plant (13.3 MW), located at the municipalities of Juscimeira and Jaciara, state of Mato Grosso (Prata River). The power plant was named PCH Agua Prata. In April 2016, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2021. The company presented a winning bid of US$ 56.3/MWh (BRL 194/MWh). The investment committed to the power plant was estimated at US$ 17.7 million (BRL 61 million). Construction works commenced in January 2016 and were in its final stages as of June 2017. Financing information was not available. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.