Porto das Aguas Thermal Power Plant Phase II

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The Brazilian company Cerradinho Bioenergia S.A. (Grupo Cerradinho) was granted an authorization to build a 70-MW sugar-cane residue fueled power plant located in the state of Goias (municipality of Chapadao do Ceu). The power plant was named UTE Porto das Aguas. In January 2009, the company signed a 30-year contract with the regulatory agency ANEEL allowing the company to build and operate the power plant. In 2008, UTE Porto das Aguas Phase I (ID# 5567) had been granted 30-year power purchase agreements to sell electricity to distribution companies starting in 2010. In 2011, the company was again granted power purchase agreements to sell electricity to distribution companies starting in 2016. This required the power plant to expand its capacity to 160 MW. The investment committed to the expansion was estimated at US$ 46.4 million (BRL 154.9 million). Construction works commenced in May 2015 and were nearly concluded by December 2015. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures. In August 2016, the IFC granted a US$ 47 million loan to Cerradinho Bioenergia, so that the company would finish the construction works and invest in its sugar-cane processing facilities.