Paranapanema and Mourao I Hydro Power Plants

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In November 2015, the Brazilian federal government conducted a public bidding for 29 existing hydro power plants whose concession contracts had expired. The Italian company Enel won the public bidding for three of these power plants: UHE Paranapanema (31.5 MW) and UHE Mourao I (8.2 MW), located at Paranapanema and Mourao Rivers (states of Sao Paulo and Parana). These power plants were previously managed by Santa Cruz Geracao and by the state of Parana public company Copel. Enel Green Power Brasil Participacoes LTDA won the bidding by offering the lowest revenue required for managing the assets and receiving a return on the disbursement made to acquire the concession rights (the winning bid was US$ 11.4 million/year or BRL 42.3 million/year). Enel agreed to pay US$ 43.2 million (BRL 160 million) for the concession rights and was the only bidder for these power plants. In January 2016, the new 30-year contracts were signed with the regulatory agency ANEEL. Enel created the special purpose companies Enel Green Power Paranapanema S.A. and Enel Green Power Mourao I to manage the power plants. The contracts guaranteed that the sale of 70% of the power plants' generating capacity to the national grid. http://www2.aneel.gov.br/aplicacoes/Contrato/Documentos_Aplicacao/CG0416%20UHE%20Mour%C3%A3o%20I%20-MME.pdf http://www2.aneel.gov.br/aplicacoes/Contrato/Documentos_Aplicacao/CG0416%20UHE%20Paranapanema-MME.pdf