Morrinhos Wind Farm

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The partnership of the Brazilian companies Atlantic Energias Renovaveis S.A. (80%) and Casa dos Ventos Energia Renovaveis S.A.(20%) was granted authorizations to build six wind power plants located in the municipality of Campo Formoso, state of Bahia (180 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL in September 2012. The sponsors created the following special purpose companies to manage the projects: * Ventos da Andorinha Energias Renovaveis S.A. - EOL Ventos da Andorinha (30 MW) * Ventos de Campo Formoso I Energias Renovaveis S.A. - EOL Ventos da Campo Formoso I (30 MW) * Ventos de Campo Formoso II Energias Renovaveis S.A. - EOL Ventos da Campo Formoso II (30 MW) * Ventos de Morrinhos Energias Renovaveis S.A. - EOL Ventos de Morrinhos (30 MW) * Ventos do Sertao Energias Renovaveis S.A. - EOL Ventos do Sertao (30 MW) * Ventos dos Guaras Energias Renovaveis S.A. - EOL Ventos dos Guaras I (30 MW) The total investment in the power plant was estimated at US$ 210.2million (BRL 625.5 million). The government periodically runs public bidding for the sale of energy to the country´s distribution companies. Except for EOL Ventos dos Guaras, all the other power plants won the public bidding that took place in July 2011, by offering an average tariff of US$ 34.9/MWh (BRL [103.87/MWh). EOL Ventos dos Guaras I won the bidding that took place in September 2013, offering a tariff of US$ 39.6/MWh (BRL 118/MWh).The project companies signed 20 -year power purchase agreements with the several electricity distribution companies. Commercial operations were expected to begin in 2016. In October 2014, Casa dos Ventos sold its 20% stake in the project to Actis Brasil Energia Fundo de Investimento em Participacoes, a subsidiary of the UK investment fund Actis. Atlantic Energias Renováveis was established as a joint-venture of Actis (60%), the Brazilian company Pattac Empreendimentos (24%) and the Spanish company Servinoga (16%). Construction works commenced in August 2014, and they were in advanced stages as of June 2015. In November 2015, the state-owned bank BNDES approved a US$ 89.1 million (BRL 297.1 million) loan to the project. The companies were 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 March 2016, the sponsors were granted US$ 106 million from the banks Bradesco and Santander to refinance its previous debt commitments. In addition, BNDES granted a US$ 34.3 million (BRL 126.9 million) loan to the project.