Capim Branco Hydroeletric Complex

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The project comprises construction and operation of two hydroeletric plants, Capim Branco I (240MW) and Capim Branco II (210MW), located in the Araguari river in the state of Minas Gerais. The company responsible for the project is a consortium originally comprising Companhia Vale do Rio Doce (CVRD), Centrais Eletricas de Minas Gerais (CEMIG), Paineiras (Grupo Suzano) and Companhia Mineira de Metais (Grupo Votorantim) and Camargo Correa. The later sold its stake of 5% in 2002 to the remaining shareholders: CVRD (48.4%), CEMIG (21.1%), Paineiras (17.9%) and CMM (12.63%). The total investment in the project is estimated in US$163 million (R$600 million). Financial closure was reached in July 2003, when CEMIG announced that it would invest US$69.9 million (R$200 million). Construction works started in September 2003 and the first plant is expected to start operations in December 2006. The energy produced will be consumed by the four shareholders. Operations commenced in May 2007.