Equatorial Energia S.A.

completed

The proposed IFC investment consists of an equity investment in EQTL (the “Sponsor”) common shares with a participation of up to R$200 million (US$99 million equivalent) to support EQTL’s acquisition and turnaround of CELPA, the electricity distribution company of the State of Para. IFC’s proposed equity investment will support investments in the expansion of sub-transmission and distribution (ST&D) projects as part of CELPA’s rural electrification program. Some of the key expansion projects to be implemented include:Island of Marajó Project – the Phase I of this project is on-going and is being completed by December 2012. The Marajó Project consists of the installation of 625 km of T&D distribution network (i.e., 138 and 69 kV) with 60-meter wide ROW, across some areas that consist of primary tropical forest of the Amazon Biome. The Phase II of the Island of Marajó Project is expected to start construction during the first half of 2015. This project consists of the installation of 586 km, 60-m wide ROW, mainly across savannah and modified habitat (forest and savannah) but also includes a yet-to-be defined segment in primary tropical forest; Calha Norte Project - This project is planned for 2015-16 and will consist of the installation of over 600 km of ST&D network that will be constructed mainly along existing roads and modified habitats at or near the Trans-Amazon Highway System. However, this Project may also include construction across approximately 100 km of primary forest; Xingu Region Project – This Project consists of 720 km of ST&D network expansion (69 and 34.5 kV), mainly along the Trans-Amazon Highway System, although potentially with approximately 100 km across primary tropical forest. This project is planned for 2016; andOver the next five to ten years, the government-subsidized rural electrification program “Luz para Todos” (LPT) will require the installations of tens of thousands of kilometers of additional distribution lines. The vast majority of these low voltage lines will be installed along existing roads.CELPA has approximately 40 off-grid diesel power stations ranging in size from approximately 0.5 to 7 MWe for an aggregate total of about 110MWe. These are situated in remote locations, serving isolated networks. About half are owned and operated by CELPA and the other half under contract by a single dedicated service provider. The aforementioned Island of Marajó interconnection project will result of the shutdown of about 14 of these diesel generation units.