Rio Parana Energia S.A.

Active

In November 2015, the Brazilian federal government conducted a public bidding for 29 existing hydro power plants whose concession contracts had expired. China Three Gorges Brasil Energia LTDA, a subsidiary of the Chinese company China Three Gorges (CTG), won the bidding for two of these power plants: UHE Jupia (1551.2 MW) and UHE Ilha Solteira (3444 MW), located at Parana River (state of Sao Paulo). These power plants were previously managed by the state of Sao Paulo public company CESP. CTG offered the lowest revenue required for managing the assets and receiving a return on the disbursement made to acquire the concession rights (the winning bid was US$ 643 million/year or BRL 2381 million/year). CTG agreed to pay US$ 3,753 million (BRL 13.8 billion) for the concession rights and was the only bidder for these power plants. In January 2016, the new 30-year contract was signed with the regulatory agency ANEEL. CTG created the special purpose company Rio Parana Energia S.A. to manage the power plants. The contract guaranteed that the sale of 70% of the power plants' generating capacity to the national grid.