Juruena Small Power Plants Complex

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JURUENA PARTICIPAÇÕES E INCORPORAÇÕES LTDA, a partnership of Maggi Energia S.A., MCA Energia e Barragem Ltda and Linear Participacoes e Incorporacoes Ltda. was granted authorizations to build five small hydro power plants located in the state of Mato Grosso (between the municipalities of Sapezal and Campos do Julio) with 91 MW in total capacity. The 30-year contracts were signed with the regulatory agency ANEEL in December 2002. In September 2005 Maggi Energia S.A. transferred its shares to the other two sponsors such that each became 50% owner of the project company. The complex started to be built in 2007 and, as of July 2010, it was still under construction. The following project companies were created to manage the construction and operation of the power plants: Campos de Júlio Energia S/A (PCH Cidezal – 17MW); Parecis Energia S/A (PCH Parecis – 15,4 MW); Rondon Energia S/A (PCH Rondon – 13 MW); Sapezal Energia S/A (PCH Sapezal – 16 MW); and Telegrafica Energia S/A (PCH Telegrafica – 30 MW). The total investment is estimated in US$ 251.2 (BRL 502.3 million). In July 2007, all project companies were granted loans from the state-owned bank BNDES. The total amount lent by BNDES was US$ 184.6 million (BRL 360 million), which represented 72% of the investment of the project. All PCH´s signed power purchase agreements with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies). In July 2010, the construction of PCH Telegrafica had to be halted due to conflicts with the native Brazilians living near the power plant site. Operations commenced in each power plant in the following dates: * In June 2011, PCH Sapezal; * In June 2011, PCH Cidezal; * In July 2011, PCH Parecis; * In August 2011, PCH Rondon; and * In August 2011, PCH Telegrafica. In August 2011, the projects received an additional direct loan from BNDES amounting to US$ 25.9 million (BRL 42.2 million). BNDES also granted a securitized loan of US$ 22.2 million (BRL 36.2 million).