Queiroz Galvao Taiba & Icarai Wind Farms

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The Brazilian company Energio Nordeste Energia Renovaveis was granted authorizations to build five wind power plants located in the state of Ceara (121.8 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL in September 2011. The following special purpose companies were created to manage the projects: * Central Eolica Taiba Aguia Ltda (23.1 MW) - Total investment: US$ 52.9 million (BRL 86.4 million) * Central Eolica Taiba Andorinha Ltda (14.7 MW) - Total investment: US$ 34.3 million (BRL 56 million) * Central Eolica Colonia Ltda (18.9 MW) - Total investment: US$ 43.1 million (BRL 70.3 million) * Central Eolica Icarai I Ltda (27.3 MW) - Total investment: US$ 68 million (BRL 110.9 million) * Central Eólica Icaraí II Ltda (37.8 MW) - Total investment: US$ 92 million (BRL 150.2 million) The investment commitment was estimated at US$ 290.4 million or BRL 473.9 million). All power plants 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) in 2009. Operations were initially set to commence in July 2012. In 2012, Queiroz Galvao Energias Renovaveis, a subsidiary of Queiroz Galvao group, acquired the shares of Energio on all project companies. 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. Finally, the electricity sold by the company is not subject to sectoral taxes. In May 2012, the sponsor applied for carbon credits. As of October 2012, construction works were underway, but behind schedule, and commercial operations were expected to commence in early 2013. In December 2012, the state-owned bank BNDES approved the following loans to the project companies: * Central Eolica Taiba Aguia Ltda - US$ 22.6 million (BRL 44.1 million) * Central Eolica Taiba Andorinha Ltda - US$ 12.2 million (BRL 23.9 million) * Central Eolica Colonia Ltda - US$ 15 million (BRL 29.3 million) * Central Eolica Icarai I Ltda - US$ 24.5 million (BRL 47.9 million) * Central Eólica Icaraí II Ltda - US$ 23.7 million (BRL 46.3 million) In October 2014, BNDES granted an additional US$ 107.9 million (BRL 254 million) in loans to the project. Commercial operations commenced in March 2014.