BW Guirapa I Wind Park

Active

Prospective

The company BW Guirapa I S.A., a partnership of the Brazilian company Brazil Wind (34%) - subsidiary of Brazil Energy - and the Spanish bank Santander (66%), was granted authorizations to build seven wind power plants located in the state of Bahia, municipalities of Pindai and Caetite (162 MW in total capacity). The35-year contracts were signed with the regulatory agency ANEEL starting in February 2012. The company BW Guirapa I created seven special purpose companies to manage the projects: Central Eolica Angical S.A. Central Eolica Caititu S.A. Central Eolica Coqueirinho S.A. Central Eolica Corrupiao S.A. Central Eolica Inhambu S.A. Central Eolica Tamandua Mirim S.A. Central Eolica Teiu S.A. The power plants were named EOL Angical, EOL Caititu, EOL Coqueirinho, EOL Corrupião, EOL Inhambu, EOL Tamandua and EOL Teiu. The total investment was estimated at US$ 268 million (BRL 630 million) and was financed in early 2014, when Santander bank agreed to invest US$ million (BRL 155 million) in the project in exchange for its shareholding in BW Guirapa I. In August 2013, the project companies had issued a total of US$ 177 million (BRL 416 million) in short-term bonds to finance the start up of the construction works. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plants controlled by BW Guirapa I S.A. won the public bidding that took place in 2011, by offering an average tariff of US$ 60.3/MWh (BRL 98.48/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. BW Guirapa I committed to start supplying to the market in second semester 2014. 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. Construction works commenced in October 2013 and were in advanced stage by December 2014.

Energy

World Bank Group

Project

Commercial, Wind, Cable car, Car parking, Power Generation (CCGT), Steel, Government, Automotive, Manufacturing (Industrial), Telecommunications