Capoeiras and Assurua Wind Complex

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Centrais Eolicas Assarua S.A., a subsidiary of the Brazilian company FIP Infraestrutura Energia Renovaveis (CER Energia), was granted authorizations to build a wind complex in the state of Bahia. The wind farm named Complexo Eolico Capoeiras e Assurua was set to be built in four phases. The first phase included the construction of three power plants with total capacity of 68 MW. The following special purpose companies were created to manage each plant: * Pedra Branca S.A. - EOL Assurua II (30 MW) * Sao Pedro do Lago S.A. - EOL Assurua V (20 MW) * Sete Gameleiras S.A. - EOL Assurua VII (18 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in February 2014. In 2013, both power plants had been granted 20-year power purchase agreements with the several electricity distribution companies through public biddings. The sponsors offered an average tariff of US$ 43.6/MWh (BRL 102.78/MWh). The total investment in this first phase was estimated at US$ 81.7 million (BRL 272.6 million). Construction works commenced in November 2014 and were in advanced stages by December 2015. 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. In June 2016, the state-owned bank BNDES approved a US$ 267.3 million (BRL 162.8 million) loan to the project.