Centrais Geradores do Sul do Brasil (Tractabel Energia)

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Gerasul is the first federally-owned Brazilian generation company to be privatized. Gerasul was created in 1997 when Eletrobras' subsidiary Eletrosul was unbundled. It is the largest generator in southern Brazil. The company's generation capacity is split between hydro (75%) and thermal (25%) facilities. Three sites of 1,110 MW capacity in total were under construction in 1998. Gerasul is located in the state of Santa Catarina, and it serves distribution companies in the South, including Celesc, CEEE, AES Sul, Rio Grande Energia, Enersul and Furnas under a 9-year power purchase agreement with them. On September 15, 1998, Tractebel acquired 42 percent of Gerasul's total capital as a sole bidder for US$ 802.1 million. Tractebel provided its own financing. In December 1998 Tractebel acquired additional 9.06% of Gerasul's stock from the Government of Brazil for US$ 79.48 million. The cost of the additional purchase of shares is undisclosed. As of June 18, 1999 Tractebel owns 70.28 percent of Gerasul's total capital that constitutes a 77.27% voting share. In January 2000, a total of US$ 0.2 million was raised in divestiture revenues with a sale of shares in Gerasul to the company's employees. In February 2002, Gerasul had its name changed to Tractebel Energia. In the same year, the company concluded works on three power plants: Machadinho (450MW), Arjona (expanded from 148 to 222MW) and Cana Brava (450MW), located in Rio Grande do Sul, Mato Grosso do Sul and Goais, respectively. In 2003, Tractebel Energia concluded the Lages co-generation plant in Santa Catarina (28MW). The total investment ammounted US$26.6 million (R$80 million), of which US$16.3 million (R$49 milliom) were provided by the Brazilian Developement Bank, BNDES. In June 2004 Eletrica Jacui SA (Elja) bought 33.33% of Jacui from Tractebel and in August 2005, Tractebel Energia sold the remaining 66.67% stake in the Jacui coal-fired project to Elja. In 2007, Tractabel Energia signed a loan for the Sao Salvador Hydroelectric plant, a 100% subsidiary, which significantly increased their capital expenditures for that year. In a joint venture, they also recieved financing for the Estreito Hydroelectric Power Plant, which was recorded as project 4818. In July 2008, Tractebel Energia S.A. acquired Hydropower Energia S.A. (PCH Jose Gelasio da Rocha) and Tupan Energia Eletrica S.A. (PCH Rondonopolis) both subsidiaries of the Brazilian company Arcadis Logos Energia, project #5577. This transaction´s total cost was estimated in US$ 116.8 million (BRL 213.9 million). The power plants have signed power purchase agreements with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies). In 2009, the company was granted a US$ 48.15 million (BRL 96.3 million) loan from BNDES and issued bonds amounting US$ 500 million (BRL 1 billion.) In June 2004 Eletrica Jacui SA (Elja) bought 33.33% of Jacui from Tractebel and in August 2005, Tractebel Energia sold the remaining 66.67% stake in the Jacui coal-fired project to Elja. Do NOT include Estreito capex in the annual update. It is a joint venture and listed as a new project; see filing system