Cuiaba Power Plant Project

active

In 1997, Enron International Corporation and Shell International Gas were awarded a build-own-operate contract for the construction of a 630 km gas pipeline and a 480 MW gas and steam-powered thermal power plant to link the existing BTB Pipeline with the city Cuiaba, state of Mato Grosso, in Brazil. The project demanded investments of US$700 million by the project sponsors with a projected three-year completion period. Part of the funding - US$ 200 million - was provided in 1999 by the Overseas Private Investment Corporation (OPIC) to include environmental safeguards such as replacing diesel fuel with gas. The construction of the Ciuaba Project was planned to occur in three stages: The first stage with 150 MW was to be fired by diesel fuel until the BTB pipeline entered service. In the second stage, another 150 MW was added, and the facility was converted to gas. The third phase entailed conversion of the plant to combined cycle operation. Three companies were created to operate the utility. Empresa Produtora de Energia (EPE) operates the power plant, Gasocidente do Mato Grosso (GasMat) operates the Brazilian side of the pipeline, and Gasoriente Boliviano (GasBol) operates the Bolivian side of the pipeline. In 2003, Prisma Energy International Inc. was created as a holding company to, through its subsidiary Prisma Energy International Services LLC, provide management and operational support for the remaining major international assets owned by the bankrupt Enron, including Cuiaba Power Plant. The company was created after Enron's board and creditors decided the Enron estate would raise more revenues from ongoing operations than through individual asset sales. Once the Enron bankruptcy is concluded, Prisma was to be owned by Enron's creditors. They were likely to sell their positions as soon as market conditions allow. As of 2005, Enron still controlled through Prisma Energy 50% of GasBol, 56% of GasMat and 72% of EPE. Early is 2007, Enron's share had been liquidated, and Ashmore and Shell each held 50% of the shares. Later in 2007, Ashmore bought Shell´s shares and became 100% owner of the project. In October 2009, the supply contract of gas that comes from Bolivia expired, and the power plant has stopped operations several times and is under the threat of shutting down. As of 2005, Enron was in the midst of liquidating its operations and distributing its assets to its creditors. http://www.prismaenergy.com/businesses/map/americas.html http://www.enron.com/corp/pressroom/icoassets.html