Escolha Thermal Power Plant

cancelled

The Brazilian company Energetica Capixaba S.A., a partnership of the Brazilian companies Thermes (33.3%) and Trana Construcoes (66.7%), was granted an authorization to build the 337.6-MW thermoelectric power plant (natural gas) named UTE Escolha located in the state of Espirito Santo. The 35-year contract was signed with the regulatory agency ANEEL in April 2009. Energetica Capixaba S.A. committed to invest US$ 528.4 million (BRL 862.4 million). In May 2011, the company signed a loan contract with SUDENE (the Brazilian northeastern region development agency) worth US$ 316.8 million (BRL 517 million). The remaining investment cost was set to be financed with the sponsor resources and other funding. The company won the bidding for purchase power agreements to sell the electricity to the grid starting in 2013. Construction works were underway, as of August 2011. Due to delays in the implementation of the project, the regulatory agency cancelled the concession contract in December 2012 and applied the due penalties.