Cana Brava Hydroelectric Power Project

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Brazilian power regulator ANEEL awarded a 35-year contract to build and operate the Cana Brava hydroelectric project to Gerasul on March 26, 1998. Tractebel holds a controlling stake in Gerasul, and CEM, a wholly-owned subsidiary of Gerasul, will undertake the project. The turnkey building contract was awarded to a consortium comprising two Brazilian companies Odebrecht and Andrade Gutierrez. The plant will start commercial operation in 2002, supplying energy to the north-east of Brazil and the central-west region. Cana Brava's power production will be sold to large customers who are free to negotiate their own electricity supplies, and to distribution companies. The project, which involves a total investment of US$ 426 million, reached financial closure in Aug. 2000. The IADB approved a US$ 160.2 million financing package to CEM: US$ 75 million in direct loan and US$ 85.2 million in syndication. In addition, the state-owned bank BNDES is providing US$ 138 million, and the private sponsors are directing US$ 127.8 million in equity.