Barra Grande Power Plant

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The consortium Barra Grande Energia SA, won a 35 years concession to build and operate the 690 MW Barra Grande hydroelectric power plant in the Pelotas River, on the border of the Brazilian states Santa Catarina and Rio Grande do Sul. The consortium was composed by CPFL Energia, Alcoa, Valesul Aluminio SA, and DME Energetica Ltda. The company offered the winning bid of US$ 118 million (R$ 232 million) in the Aneel’s (Brazilian energy regulatory agency) auction, which will be paid in annual installments until the end the concession period. The concession contract was award by Aneel to Energetica Barra Grande SA (Baesa), an specific purpose enterprise, in April of 2001. The construction of the power plant was initiated in 2002. After protests by opponents of the project, construction was halted until early 2005. Energetica Barra Grande SA (Baesa) announced that it expects to invest US$ 407.3 million (R$800 million) in the project. In March 2003, Barra Grande Energia (CPFL) was authorized by ANEEL, the Brazilian regulatory agency for the eletricity sector, to transfer 25% of Baesa's shares to other shareholders. In this transaction the Companhia Brasileira de Aluminio (a subsidiary of Votorantim) acquired through CPFL Energia 15% of the stake sold by Barra Grande Energia. The remaining 10% was distributed among other shareholders. In June 2003, the Brazilian Development Bank, BNDES, approved a US$161.1 million financing (R$460 million) to Baesa. BNDEs announced that the total investment in the project is expected to be US$433.3 (R$1,300 million). The Barra Grande Power Plant became operational in 2005. None None