Grupo Cocal

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The Brazilian company Cocal Comercio Industria Canaa Acucar e Alcool Ltda., a wholly-owned subsidiary of Grupo Cocal, was granted authorizations to build three thermal power plants located in the state of Sao Paulo (municipality of Narandiba and Paraguacu Paulista). The cogeneration power plants were set to use sugar-cane residue resulting from the sugar cane pressing and ethanol producing unit belonging to the same company as fuel. The 30-year contract for the Cocal Power Plant was signed with the federal regulatory agency Aneel in December 2001. The power plant was set to have a capacity of 28.2 MW. Construction works on this plant started in 2002, and the unit became operational in same year. The investment value committed to this power plant was not available. This power plant was established through a partnership with two subsidiaries of the Brazilian company Arcadis Logos S.A., but Cocal maintained a 90% controlling stake at the project. Two other projects were implemented since then: in May 2004, Termeletrica Canaa, located at Paraguacu Paulista (Sao Paulo) was granted a 30-year authorization from Aneel; and in June 2008, Cocal II, located at Narandiba (Sao Paulo), was also granted a 30-year authorization. Both projects were wholly-owned by Cocal. In 2005, the sponsor began the construction of Termeletrica Canaa. This power plant was set to have a capacity of 30 MW and was financed with a US$ 16.5 million (BRL 41.1 million) loan granted from the state-owned bank BNDES, which was approved in December 2005 (total investment on this cogeneration unit was estimated at US$ 20.57 million or BRL 50 million). In 2008, the sponsor began the construction of Cocal II. This power plant was set to have a capacity of 160 MW and was financed with a US$ 164.97 million (BRL 301.41 million) financing package approved by the state-owned bank BNDES in February 2008 (total investment in the pressing unit and cogeneration facility was estimated at US$ 273.82 million or BRL 501.1 million; the investment committed solely to the cogeneration unit was not available). Commercial operations on this unit commenced in September 2014. UTE Canaa and Cocal signed power purchase agreements arranged with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies). In February 2012, the state-owned bank BNDES granted a US$ 57.3 million (BRL 111.9 million) loan to finance the expansion of the electricity generation units and the associated sugar processing facilities. No information was available on the investment figures.