Pipoca Small Power Plant

active

The Brazilian company HP2 S.A. was granted an authorization to build and operate a 20-MW small hydro power plant located in the Manhuacu River, state of Minas Gerais (between the municipalities of Pocrane and Alvarenga). The 30-year contract was signed with the regulatory agency ANEEL in September 2001. In 2006, the sponsors created the special purpose company Hidreletrica Pipoca S.A. to lead the project due to the law forbidding a single company to operate in the generation and distribution segments simultaneously. As of 2009, state-owned company Cemig held a 49% stake in this company, while Omega Energia Renovavel held 51% of the shares. Hidreletrica Pipoca S.A. committed to invest US$ 57.5 million (BRL 115 million) in the construction of PCH Pipoca. Financial closure for the project was reached in 2009, when the company was granted a US$ 41.7 million (BRL 83.4 million) syndicated loan by the state owned bank BNDES (resources would be released from Banco Itau BBA S.A. and Banco do Brasil S.A.) The remaining cost was set to be financed with the sponsors’ internal resources. The power plant became operational in October 2010.