Arembepe Thermal Power Project

active

In April 2007, the Brazilian company Arembepe Energia S.A. was granted an authorization to build a 150 -MW thermal power plant located in the state of Bahia (municipality of Camaçari). Arembepe Energia S.A. signed a 35-year contract with the regulatory agency ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. The power plant was set to use diesel as fuel. Arembepe Energia was established as a partnership of the state-owned Petrobras (30%) and Nova Cibe Energia (70%). As of December 2009, Nova Cibe was owned by Bertin (50%) and Equipav (50%). In 2006, the company took part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). Arembepe Energia S.A. committed to invest US$ 182.5 million (BRL 334 million) in the facility. In February 2008, the company was granted a US$ 102.8 million (BRL 188.3 million) syndicated loan contract from BNB (Banco do Nordeste), a state-owned development bank. Construction works on this plant were concluded in March 2010, and operations commenced in May 2010.