Parnamirim Power Plant

cancelled

The project comprises the construction and operation of a 93MW thermal power plant (diesel) in the state of Rio Grande do Norte. The company responsible for the project is Parnamirim Energia SA, controlled by Collett SA, a Brazilian company. In July 2002 the plant was commissioned. The estimated total costs were US$55 million. In January 2002, Parnamirim signed a PPA with the Brazilian Commerce Chamber for Emergency Energy (CBEE), which is a four-year take-or-pay contract for the full capacity of the plant. Parnamirim power plant was part of a priority program for thermal power plants (Programa Prioritario de Termeletricas), implemented by the Brazilian federal government in 2000. The program, in order to foster the construction of thermal power plants, provided a short-term take-or-pay contract and, in some cases, financing for the construction of the plants (through the Brazilian Development Bank, BNDES). In December 2004, the power purchase agreement was ended and, in 2005, the sponsor decided to close the facility and sell the assets.