Centrais Eletricas do Para (Celpa)

Active

Prospective

Centrais Eletricas do Para (Celpa) is an electricity distribution company that used to belong to the State of Para. 51.25% of its shares were sold to Grupo Rede and Inepar on July 8, 1998 for the minimum bid of US$ 388.6 million. Grupo Rede holds 65% of the stake and Inepar holds 35%. Celpa serves 123 towns in Brazil's second largest (but sparsely populated) State of Para. The length of its transmission lines is 1,868 km. In 1998 Celpa had 839,000 customers. In 1997 89.9% of Celpa's power was supplied by Tucurui, Brazil's second largest hydroelectric facility. Electricity produced by Tucurui and Celpa's own 30 MW Curua-Una hydro facility is distributed to customers connected to Brazil's North/Northeast transmission grid. Unconnected customers are served from 41 diesel-fired generators owned by CELPA. In 1996 and 1997, CSW International, a subsidiary of CSW Energy, bought two minority stakes (37% of the total capital) in Rede for $80 million. In May 1998, CSW International paid US$69 million to increased its stake to 44%. In 2000 CSW, was acquired by American Electric Power (AEP). In October 2003, AEP sold its stake in Rede to Denerge. In October 1998, Brazilian National Development Bank, BNDES, indirectly acquired 5.3% of the total capital of Celpa (BNDES acquired 16.16% of the total capital of CAIUA, a subsidiary of Rede that indirectly owns 33% of Celpa's total capital). As part of the electricity rationing program the company received a loan from BNDES (the Brazilian bank for development) of US$ 22.5 million (R$ 79.7 million) to compensate the losses imposed by the program. In 2006, the company was granted a US$ 135 million loan from the IADB, of which US$ 100 million was in fact transferred to the company (US$ 40 million A-loan and US$ 60 million provided by a club deal with Banco Societe Generale and Banco Itau Europa. In 2009, Celpa was granted a total of BRL 1160 million in loans, of which BRL 566.4 million was granted by BNDES, Eletrobras and Banco da Amazonia. In February 2012, Celpa requested and was granted the status of "judicial recuperation" due to its financial difficulties. Under this status, the company concession contract remained valid, but its activities were set to be supervised by an expert appointed by the courts. In September 2012, the company Equatorial Energia acquired Celpa's shares from Grupo Rede. Equatorial Energia was established as a partnership of Cayman Island investment fund PCP Latin America Power (22.9%), the Brazilian investment fund Squadra Investimentos (15.6%), IFC (5.4%), the Swiss private bank CSHG (5.1%) and other small investors (51%). In November 2014, the state-owned bank BNDES approved a US$ 212 million (BRL 498 million) loan to the company. Review % Private year by year to determine if inv. in facilities applies. http://www.gruporede.com.br/arquivos/composicao_acionaria/rede_qacionario_celpa_jan05.pdf In 1999 the company invested US$ 57. 5 (R$ 103.9 million). A significant amount (around 50%) of these investments were applied to the program “Mediacao as Claras”. The purpose of this program is to improve the electricity consumption measurement in order to reduce the invoice errors and the opportunities of illegal connections. The total consumption of electricity in 1999 was 3,431,198 MWh. In 2000 Celpa launched the program “Luz no Campo”. The goal of this three-year-program is to bring electricity to 700 rural villages in the state of Parana where about 59,250 potential new consumers leave. The total investments undertaken by Celpa in 2000 amounted US$ 50.5 millions (R$ 98.3 million), most of it was applied to the programs “Luz no Campo” and “Medicao as Claras”, which was resumed in 2000. The total consumption of electricity in 2000 raised to 3,838,698 MWh. In 2001, the company resumed the two programs mentioned above. The total amount of investments for that year was US$ 40 million (R$ 89 million) and the total consumption of electricity dropped to 3,660,226 MWh. The reduction in the consumption was due to the rationing electricity program carried out by the Brazilian government to overcome the electricity supply crises occurred in Brazil during 2001. In 2002, Celpa resumed it investments in the two programs mentioned, its total investments amounted US$ 23 million (R$ 67.2 million). With the end of the rationing electricity program the total consumption raised to 3,835,371 MWh. Figures for Commit. Inv. in Facilities were deleted because there is no evidence that private parties control the Celpa (% Private < 50%): Year % Private Inv. in Gov. Assets Commit. Inv. in Facilities 1998 47.4% 388.6 0 1999 47.4% 0 57.5 2000 47.4% 0 50.5 2001 47.4% 0 40 2002 47.4% 0 23 2003 47.4% 0 23.1 2004 47.4% 0 45.3

Energy

World Bank Group

Project

Government, Hydro, Power Generation (CCGT), Power Transmission, Commercial