Maranhao III Thermal Power Plant (Parnaiba II)

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The Brazilian company UTE Parnaiba II Geracao de Energia S.A., a subsidiary of the Brazilian company MPX (Group EBX), was granted the authorization to build and operate a natural gas fueled power plants located in the state of Maranhao (499 MW in total capacity). The 35-year contract was signed with the regulatory agency ANEEL in March 2012. In August 2011, the company had taken part in a competitive bidding process and won the right to supply electricity for 20 years in the regulated market starting in 2014 (the company won the bidding by offering a tariff of US$ 51.6/MWh or BRL 101.9/MWh). The value of the investment committed to the project was estimated at US$ 306.8 million (BRL 606 million). The EPC contract for the power plant was signed with the company Initec in August 2011. As of March 2013, the construction works were underway (58.5% was concluded). Commercial operations were set to commence in February 2014. 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. In September 2013, EBX sold part of its ownership in MPX, the subsidiary of EBX Capital Partners responsible for managing the group's energy projects. MPX changed its name to Eneva, and its ownership structure was established as follows: EBX, 20%; the German company E.ON, 42.9%; free float, 37.1%. In December 2013, the state-owned bank BNDES approved a US$ 135.8 million (BRL 280.7 million) loan to the project. In October 2015, BNDES granted an additional funding of US$ 76.9 million (BRL 256.6 million).