Galvao Rio Grande do Norte Wind Farms

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The Brazilian company Sao Bento Energia, a wholly-owned subsidiary of Grupo Galvao, was granted authorizations to build four wind parks located in the state of Rio Grande do Norte (94 MW in total capacity, municipality of Sao Bento do Norte). The 35-year contracts were signed with the regulatory agency ANEEL starting in April 2011. The following special purpose companies were creates to handle the parks: GE Sao Bento do Norte Energetica S.A., GE Boa Vista S.A., GE Farol S.A. and GE Olho D’Agua S.A. The power plants were named EOL Dreen Sao Bento do Norte (30 MW), EOL Dreen Boa Vista (14 MW), EOL Farol (20 MW) and EOL Dreen Olho Das Aguas (30 MW). The total investment in the power plants was estimated at US$ 246 million (BRL 401.4 million) and was financed with a loan granted by the state-owned development bank BNDES approved in December 2011 (US$ 172.8 million or BRL 282 million). All special purpose companies signed power purchase agreements arranged with the state-owned company Eletrobras for 15 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies) in August 2010. Commercial operations were set to begin in the end of 2012.