Boa Vista II Small Hydro Power Plant

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In November 2015, the Brazilian company SPE Boa Vista II Energia S.A, a subsidiary of CPFL Energias Renovaveis S.A. was granted the 30-year contract to build and operate the Boa Vista Small Hydro Power Plant (26.5 MW total capacity) located at the municipality of Varginha, state of Minas Gerais (Verde River). The power plant was named PCH Boa Vista II. In April 2015, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2020. The company presented a winning bid of US$ 56.1/MWh (BRL 207.64/MWh). The investment committed to the power plant was estimated at US$ 45.5 million (BRL 168.5 million). Financial closure was achieved in March 2016, when the sponsor was granted a US$ 12.5 million (BRL 50 million) 1-year-6-month term loan from the Brazilian bank Itau/Unibanco. The remaining investment cost was equity financed (US$ 33 million). Commercial operations were expected to commence in 2020.