Quebra-Queixo Power Plant

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The consortium Companhia Energetica Chapeco (CEC) won a 35-year concession to build and operate the 120 MW Quebra-Queixo hydroelectric power plant in the Chapeco River, in Ipuacu city at Santa Catarina state. The consortium’s members are the Brazilian construction companies Construtora Queiroz Galvao (59%) and Construtora Barbosa Mello (41%). The consortium offered the winning bid of US$ 28.6 million (R$ 61.5 million) in Aneel’s (Brazilian energy regulatory agency) auction, which will be paid in annual installments until the end the concession period. The concession contract was awarded by Aneel in November of 2000. The construction of the Quebra-Queixo power plant was initiated in 2001 and began commercial operations in May 2003. The consortium announced that it expects to invest US$ 102 million (R$ 220 million) in the project. The main client of the company will be Centrais Eletricas de Santa Catarina (Celesc), which is the main electricity distribution company in the region. Energetica outsourced the plant's operations and maintenance to France's Alstom. Alstom will begin work in March 2003. A Power Purchase Agreement with local distributor Celesc was being negotiated in 2003.