Pedra do Sal Wind Power Plant

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Sea West do Brasil Ltda was granted an authorization to build a 18-MW wind power plant located in the state of Piauí (municipality of Parnaíba). The company signed a 30-year contract with the regulatory agency ANEEL to build, own and operate the facility in October 2002. In April 2008, the authorization was transferred to Econergy Pedra do Sal S.A., a subsidiary of Econergy International. In October of the same year, Tractebel acquired the authorization and established the special purpose entity Eolica Pedra do Sal S.A. to manage the project. The investment on the project amounted to US$ 56.2 million (BRL 102.8 million). Construction works started in August 2008, and the power plant commenced operations in February 2009. In 2009, a US$ 36 million (BRL 72 million) loan was granted from the state-owned bank BNDES. This funding was set to be used in the expansion of the power plant to a 30 MW capacity, representing an investment of US$ 51.8 million (BRL 103.6 million). The construction works on this new phase was expected to be concluded by the end of 2010. Eolica Pedra do Sal S.A. signed power purchase agreements arranged with the state-owned company Eletrobras for 20 years through the Brazilian Federal program PROINFA (incentive program for alternative power generating companies).