Foz do Chopim Small Hydro Power Plant

active

The Brazilian company Foz do Chopim Energetica Ltda., a partnership of the state-owned electricity distribution company Copel (36%) and SILEA Participações Ltda (64%) was granted authorization to build a 29-MW small hydro power plant located in the Chopim River, state of Parana (municipality of Cruzeiro do Iguacu). The 30-year contract was signed with the regulatory agency ANEEL in April 2000. Foz do Chopim Energetica committed to invest US$ 21.6 million (BRL 51.4 million) in the construction of the project. In 2001, the company tried to obtain a loan from the state-owned bank BNDES, but was not successful. Copel then decided to a US$ 12 million (BRL 28.5 million) loan to Foz do Chopim Energetica. This fact raised suspicion of wrong doing and the transaction became target of judicial investigation in 2003. This investigation process was later suspended, and Foz do Chopim Energetica started paying the debt once operations commenced. Construction works on this plant started in the end of 2000, and the unit became operational in the end of 2001. Copel signed a 10-year power purchase agreement with Foz do Chopim Energetica also in 2001.