Cachoeira Dourada Hydroelectric Power Plant

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Cachoeira Dourada Hydroelectric is a 658 MW power plant in Goias State. The facility was partially privatized in September 1997 when the State government sold a 78.9% equity stake in Cachoeira Dourada Centrais Eletricas (CDSA), the power plant operator, for $715 million (779.7 million reals) to a consortium led by Endesa of Chile. The equity stake was sold through an auction on the Rio de Janeiro stock exchange market. In that year, a concession contract was signed by CDSA in which the company became responsible for maintaining and operating the facility for 30 years. Once the contract expires, the company may request an extension through direct negotiation. The power plant was privatized with a 15-year power purcharse agreement to supply 100% of its output to CELG, the Goias state electricity company. In 2003, CELG and Cachoeira Dourada started a judicial dispute regarding the prices of the electricity produced by the plant.