Macambira Wind Park

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The Spanish company Gestamp was granted authorizations to build five wind power plants located in the state of Rio Grande do Norte (110 MW in total capacity, municipalities of Joao Camara and Santana do Matos). The 35-year contracts were signed with the regulatory agency ANEEL starting in June 2012. Gestamp created three special purpose companies to manage the projects: EOL Cabeco Preto III - Gestamp Eolica Agreste S.A. (26 MW) EOL Cabeco Preto V - Gestamp Eolica Jardins S.A. (26 MW) EOL Cabeco Preto VI - Gestamp Eolica Alvorada S.A. (18 MW) EOL Macambira I - Gestamp Eolica Macambira I S.A. (20 MW) EOL Macambira II - Gestamp Eolica Macambira II S.A. (20 MW) The total investment in the power plants was estimated at US$ 119.2 million (BRL 441.4 million). Financial closure was achieved in April 2016, when Gestamp was granted a US$ 46.6 million (BRL 172.5 million) loan from the Brazilian private bank Bradesco. The remaining cost was equity financed. Construction works commenced in March 2015. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The power plants won the public bidding that took place in 2011 by offering an average tariff of US$ 29/MWh (BRL 107.54/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. All power plants committed to start supplying the market in 2016. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.