Codora Thermal Power Plant

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The Brazilian company Codora Energia Ltda, a subsidiary of Jalles Machado S.A., was granted an authorization to build a 38.6-MW thermal power plant located in the state of Goias(municipality of Goianesia). The cogeneration power plant was set to use sugar cane residues resulting from the ethanol producing unit belonging to the same company as fuel. In August 2009, the company took part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). In February 2010, Codora Energia Ltda signed a 35-year contract with the regulatory agency ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. The company had previously received authorizations to undertake the development study for the project (in 2007 and in 2008). Codora Energia Ltda committed to invest US$ 33.3 million (BRL 66.5 million) in the facility. In June 2009, the company was granted a US$ 127 million (BRL 254 million) in loans from BNDES (direct and syndicated loans), a state-owned development bank. The resources from the loan was directed both to the construction of an ethanol producing unit (named Unidade Otavio Lage) and the cogeneration facility, which had a total cost of approximately US$ 180 million (BRL 360 million). Construction works, undertaken by the construction company Conenge, commenced in April 2008, and were underway by the end of 2009. Commercial operation commenced in September 2011.