Dardanelos Hydro Power Plant

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In October 2006, Energetica Aguas da Pedra, which was formed by state-owned Eletronorte(24.5%), Neoenergia (51%), and state-owned Chesf (24.5%), was awarded in a competitive bidding process organized by the federal regulatory agency Aneel the 35-year contract to build and operate a 261 MW hydro power plant located in the Aripuana River, state of Mato Grosso. Besides Energetica Aguas da Pedra, only one company took part in the bidding contest: the Brazilian Fuad Rassi. The bidding criteria set by the federal regulatory agency ANEEL was the highest amount to be paid for the right to undertake the project. The winning bid was for US$ 0.540 million (BRL 0.988 million) to be paid in yearly installments for the duration of the contract, starting from the year in which operations commence (using a 10% discount rate, the present value of these contributions was estimated at US$ 122.5 million). The contract was signed in June 2007, and Energetica Aguas da Pedra was set to lead the project during the 35-year contract period. The sponsor committed to invest US$ 407.1 million (BRL 745 million) in the power plant. Financial closure was achieved in October 2008, when the sponsor was granted a US$ 265 million (BRL 485 million) loan from BNDES. The remaining cost was financed with the sponsors’ internal resources. The construction works were undertaken by the Brazilian company Odebrecht. Construction works started in August 2007, and operations commenced in August 2011.