Retiro Baixo Hydroelectric Plant

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In March 2007, a mixed public and private consortium began construction of Retiro Baixo, an 82 MW hydroelectric plant on the Paraopeba river in the state of Minas Gerais, Brazil. Retiro Baixo was part of a federal growth acceleration plan called PAC. The constortium owning Retiro Baixo was comprised of three Brazilian firms: Alen (10%), Logos (15.5%) and Orteng (25.5%) as well as state -owned Electrobras (49%). Logos was a subsidiary of Arcadis [Netherlands]. In December 2005, the 30 year contract to build, operate and transfer Retiro Baixo was awarded to Oteng through a competitive tender process. Bidding criteria was not known. The plant was scheduled to start delivery of power in 2009, according to 30-year power sale contracts signed at the auction. Total investment in Retiro Baixo was to be 293mn reais (US $150.3 million). The project reached financial closure on December 20, 2007 when the Brazilian development bank BNDES approved a loan of 185mn reais (US 94.9 million) for the construction of the Retiro Baixo hydro plant. As of December 31, 2008, Arcadis, through Logos, controlled 25.5% of the project company shares. In February 2010, ANEEL, Brazilian Regulatory Agency, authorized Retiro Baixo Energetica to test the power plant. Finally, in March of the same year, the first unit ( the power plant is composed by two units) began its commercial operation, while the second one started to operate in May. Figures converted from Brazilian real to USD using the period average of the market rate for 2007 published by the IMF.