Malagone Small Hydroelectric Power Plant

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The Brazilian company Wanerg Energetica Ltda was granted the authorization to build a 19-MW hydro power plant in the municipality of Uberlandia, state of Minas Gerais in November 2007. Wanerg Energetica created the SPE Hidreletrica Malagone S.A. to manage the 30-year contract signed with the regulatory agency ANEEL . Financial closure for the project was reached in July 2009, when state-owned banks BNDES approved a US$ 33 million (BRL 65.9 million) loan to the project. The total investment in the facility was estimated at US$ 46 million (BRL 92 million). The project company is also building a 34-km transmission line to connect the power plant to the distribution company CEMIG. By the time financial closure was reached, 55% of the construction works were completed. The sponsor expected that the units would commence operations in October 2009, but tests were underway in March 2010. Commercial operation commenced in April 2010.