Ponta Negra Thermal Power Plant

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The Brazilian company GERA - Geradora de Energia do Amazonas S/A, a partnership of Grupo Servtec (50%) and Fundo de Investimento em Participações Brasil Energia (50%), was granted an authorization to build and operate an 85.4-MW thermal power plant located in the state of Amazonas (municipality of Manaus). The power plant was set to use diesel and natural gas as fuel. In January 2006, GERA signed a 30-year contract with the regulatory agency ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. The company established a 20-year agreement to sell the electricity to the local distributor Manaus Energia. GERA committed to invest US$ 105.5 million (BRL 230 million) in the facility. In 2006, the company was granted a US$ 61.9 million (BRL 136 million) loan contract from Banco da Amazonia, a state-owned development bank. The power plant commenced operations in December 2006.