Delta 1 Wind Park

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The Brazilian company Omega Energias Renovaveis, a partnership of the Brazilian company Tarpon (49.2%) and the American investment fund Warburg Pincus (50.1%), was granted authorizations to build three wind power plants located in the state of Piaui (75.6 MW in total capacity, municipality of Parnaiba). Omega established three companies to lead the projects: * Porto das Barcas Energia S.A. - EOL Porto das Barcas (28.8 MW) * Porto Salgado Energia S.A. - EOL Porto Salgado (18 MW) * Porto do Parnaíba Energia S.A. - EOL Delta do Parnaiba (28.8 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in April 2012. The total investment in the power plants was estimated at US$ 121.1 million (BRL 285.1 million). The three power plants controlled by Omega won the public bidding for the sale of energy to the country´s distribution companies that took place in 2011, by offering an average tariff of US$ 61.3/MWh (BRL 100/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies , and the agreements included the annual adjustment of the tariff to the inflation rate. Omega committed to start supplying to the market in 2014. As of March 2013, the environmental licenses had been issued, but construction works had not commenced. 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 accelated depreciation methods of accounting for construction expenditures. Finally, the electricity sold by the company is not subject to sectoral taxes. In December 2013, the state-owned bank BNDES approved a US$ 88.5 million (BRL 208.2 million) to finance the power plants. Commercial operations commenced in July 2014.