Guilman-Amorim

completed

Summary Of Project Information (SPI)Project NameBrazil-Guilman-Amorim Hydroelectric ProjectRegionLatin AmericaSectorProject No007906Projected Board DateMarch 25, 1997Company NameUsina Hidroeletrica Guilman-Amorim S.A.Technical Partner and/or Major Shareholders The Company’s shareholders and Sponsors are Belgo-Mineira for 51% of the share capital and Samarco for 49%. Belgo-Mineira’s core business activities are in the steel manufacturing sector while Samarco is a mining companyProject Cost Including proposed IFC investment US$146 million, including a US$20 million IFC ‘A’ loan, US$86 million IFC ‘B’ loan and US$10 million IFC ‘C’ loan (quasi-equity).Location of project and Description of site Plant located on the Piracicaba river, in the Municipalities of Nova Era (the reservoir) and Antonio Dias (the Power House), Minas Gerais.Description of Company and Purpose of Project This project involves a build, own and operate a run-of-the-river 140 MW hydroelectric plant on the Piracicaba river, in the State of Minas Gerais. The plant will supply energy to Belgo-Mineira Monlevade steel plant and to Samarco’s Germano-Aalegria mine, through the State utility company, CEMIG. The Brazilian Ministry of Mines and Energy predicts an electricity shortage as early as 1997 in the Interconnected System of Southern Brazil. Given the limited resources of the Public Sector and in accordance to the World Bank recommendations, the Brazilian Government issued a new regulatory framework to allow the Private Sector to generate electricity. In this context, the Sponsors, who are both large electricity consumers, have decided to develop their own power generation capacity with the objective to reduce their cost of electricity and to increase the reliability of power supply. This is the first private project in the power sector to be implemented in Brazil Environmental Category and Issues This is a category Special B project under IFC’s environmental review procedures because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. Environmental issues associated with this project include: land use modification, erosion control and effects on aquatic resources and water users. The environmental impacts of this project are expected to be less than significant, and in compliance with local environmental requirements and consistent with applicable World Bank environmental policies.The is from the Public Information Center.Date SPI sent to PIC February 18, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).