Capivari Small Hydro Power Plant

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In January 2002, Consorcio Cebranorte Urbano, a partnership of the Brazilian companies Urbano Agroindustrial Ltda (50%) and Cebranorte Geracao S.A. (50%), was granted the 30-year contract to build and operate a small hydro power plant (18.7 MW inl capacity), located near the municipalities of Sao Martinho and Sao Bonifacio, state of Santa Catarina. The power plant was named PCH Capivari. The construction of power plant actually commenced in 1989, but it was later halted due to lack of funding. The construction works restarted in 2012, and were completed in June 2016. The total investment in the power plants was estimated at US$ 14.8 million (BRL 51.7 million). Financing information was not available. In April 2016, the company was granted power purchase agreements to sell electricity to distribution companies starting in 2021. The company presented a winning bid of US$ 54.47/MWh (BRL 189.98/MWh). 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 accelerated depreciation methods of accounting for construction expenditures.