Delta 2 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 (74.8 MW in total capacity, municipality of). The 35-year contracts were signed with the regulatory agency ANEEL starting in May 2015. Omega created three special purpose companies to manage the projects: EOL Porto do Delta - Porto do Delta Energia S.A. (30.8 MW) EOL Testa Branca I - Testa Branca I Energia S.A. (22 MW) EOL Testa Branca III - Testa Branca III Energia S.A. (22 MW) The total investment in the power plants was estimated at US$ 145.7 million. Financial closure was achieved in June 2016 when the sponsor signed the following financing agreement: * EOL Porto do Delta: the financing comprised a US$ 36.9 million (BRL 128.3 million) 16-year BNDES loan; US$ 18.6 million (BRL 64.6 million) 2-year guarantee facility and US$ 7.2 million (BRL 25 million) in equity. * EOL Testa Branca I: the financing comprised a US$ 20 million (BRL 69.5 million) 16-year BNDES loan; US$ 10.1 million (BRL 35 million) 2-year guarantee facility and US$ 9.8 million (BRL 34 million) in equity. * EOL Testa Branca III: the financing comprised a US$ 24.3 million (BRL 84.3 million) 16-year BNDES loan; US$ 12.2 million (BRL 42.5 million) 2-year guarantee facility and US$ 6.6 million (BRL 23 million) in equity. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. EOL Porto do Delta and EOL Testa Branca I won the public bidding that took place in 2013 by offering an average tariff of US$ 31.7/MWh (BRL 117.5/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. EOL Testa Branca III won the public bidding that took place in 2015 by offering an average tariff of US$ 48.3/MWh (BRL 178.88/MWh). All power plants committed to start supplying the market in 2018. 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.