Salto Bandeirantes Small Hydro Power Plants

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In March 2008, the Brazilian company Santa Fe Energetica Ltda was granted the 30-year contract to build and operate the a small hydro power plant (4.2 MW total capacity) located near the municipalities of Santa Fe and Nossa Senhora das Gracas, state of Parana (Bandeirantes River). The power plant was named PCH Salto Bandeitantes. The investment committed to the power plant was estimated at US$ 5.7 million (BRL 19.8 million). Financial closure was achieved in the first semester of 2015, when the sponsor was granted a US$ 5.4 million (BRL 18 million) term loan from the Brazilian state-owned bank BRDE. In April 2016, the company was granted power purchase agreements to sell electricity to distribution companies starting in 2021. The company presented a winning bid of US$ 55.6/MWh (BRL 194/MWh). 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.