Salto do Rio Verdinho HPP

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On October 31, 2007, Triunfo Participacoes e Investimentos(TPI) transferred 100% of its shares in Rio Verdinho Energia SA, project company of the 93 MW Salto do Rio Verdinho Hydroelectric Power Plant, to Companhia Brasileira de Aluminio (CBA), a subsidiary of Grupo Votorantim. The Salto do Rio Verdinho HPP was to be located in Goias state in the municipality of Cacu. Rio Verdinho Energia SA was included in the Growth Acceleration Program (PAC) and, together with Rio Verde Energia SA (Salto Hydrelectric Power Plant, project #5196) amounted to 201 MW of installed power and an average of 122 MW of power assured to the Brazilian Interconnected System. The license to construct and operate the Salto Hydroelectric Power Plant and the Salto do Rio Verdinho Hydroelectric Power Plant was awarded to Triunfo Participacoes e Investimentos (TPI) by Aneel on July 12, 2002 in a competitive tender. The number of final bids was not known, but 13 bidders were prequalified to bid on the Salto do Verdinho HPP. The bidding criterion was the highest annual payment to the government over the 35 year contract. TPI acquired Salto (108 MW) and Salto do Rio Verdinho (93 MW) concessions for R$450,000 and R$410,000, respectively. The total project cost was estimated at R$ 342.4 million (US $187.1 million). In August 2008, BNDES approved financing of R$ 250 million (US $136.6 million) for the Salto do Rio Verdinho Power Plant which corresponded to 73% of the project’s total investment. The remaining 27% was to be financed through the sponsor’s equity. Due to its obligations in the auction, CBA was to pay approximately 4.0 million real (US $2.2 million) over the 35 year contract. Commercial operations commenced in July 2010.