Atlantic Energias Renovaveis Wind Park

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Atlantic Energias Renovaveis S.A., a partnership of the Brazilian company Pattac Empreendimentos e Participacoes S.A. and the Spanish companies Adelanta Corporacion, Servinoga S.L. and Cupa Renovables, was granted authorizations to build two wind power plants located in the state of Rio Grande do Norte (60 MW in total capacity, municipalities of Joao Camara and Parazinho). Atlantic established two companies to lead the projects: * Renascenca V Energias Renovaveis Ltda. - EOL Renascenca V (30 MW) * Eurus II Energias Renovaveis Ltda. - EOL Eurus II (30 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in April 2011. The total investment in the power plants was estimated at US$ 102 million (BRL 240 million), US$ 51 million each power plant. The two power plants controlled by Atlantic won the public bidding for the sale of energy to the country´s distribution companies that took place in 2010, by offering an average tariff of US$ 69.2/MWh (BRL 121.83/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies , and the agreements included the annual adjustment of the tariff to the inflation rate. Atlantic committed to start supplying to the market in 2013. As of March 2013, the environmental licenses had been issued, but construction works had not commenced. 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 accelated depreciation methods of accounting for construction expenditures. Finally, the electricity sold by the company is not subject to sectoral taxes. In September 2011 , Atlantic applied for carbon credits for these power plants. In February 2013, the state-owned bank BNDES approved a US$ 17.5 million (BRL 41.3 million) loan to finance EOL Eurus II. In December 2013, the construction works were completed, and the sponsors were waiting for the authorization to commence operations. In December 2014, BNDES approved an additional US$ 40.2 million (BRL 94.5 million) loan. In December 2015, an additional financing of US$ 57.2 million was approved to the project, which included 2 guarantee facilities with maturity of 2 year arranged by Santander and Banco Bradesco and two term loans with maturity 2 and 16 years from BNDES.