Chapada do Piaui II Wind Park

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The companies Contour Global do Brasil (36%), a subsidiary of the American company Contour Global, the Brazilian state-owned company CHESF (50%) and the Brazilian Investment Fund Salus (14%) were granted authorizations to build six wind power plants located in the municipalities of Caldeirao Grande and Simoes, state of Piaui (180 MW in total capacity, each with 30 MW). The 35-year contracts were signed with the regulatory agency ANEEL starting in May 2014. The following special purpose companies were created to manage each plant: * Ventos de Santa Joana I Energias Renovaveis S.A. – EOL Ventos de Santa Joana I * Ventos de Santa Joana III Energias Renovaveis S.A. – EOL Ventos de Santa Joana III * Ventos de Santa Joana IV Energias Renovaveis S.A. – EOL Ventos de Santa Joana IV * Ventos de Santa Joana V Energias Renovaveis S.A. – EOL Ventos de Santa Joana V * Ventos de Santa Joana VII Energias Renovaveis S.A. – EOL Ventos de Santa Joana VII * Ventos de Santo Augusto IV Energias Renovaveis S.A. – EOL Ventos de Santo Augusto IV The total investment in the power plants of the wind complex was estimated at US$ 267.8 million (BRL 629.4 million). Financial closure was achieved in December 2014 when the state-owned development bank BNDES approved a US$ 143.8 million (BRL 338.05 million) loan to finance the project. In November 2015, BNDES approved an additional US$ 155.3 million (BRL 575.1 million) loan to the project. In January 2016, BNP and Santander arranged a US$ 176.1 million loan to the project. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The six power plants won the public bidding that took place in 2013, by offering an average tariff of US$ 53.3/MWh (BRL 125.37/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. The sponsors committed to start supplying to the market in 2016. 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.