Santana do Livramento Wind Farm

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The Brazilian company Livramento Holding S.A., owned by the state-owned company Eletrosul Centrais Eletricas S.A. (49%), the investment fund Rio Bravo Energia I (41%), and Eletrosul pension fund (10%), was granted the authorizations to build five wind power plants located in the state of Rio Grande do Sul (78 MW in total capacity ). The 35-year contracts were signed with the regulatory agency ANEEL starting in February 2012. The sponsors created the following special purpose companies to manage the projects: Eolica Cerro Chato IV S.A. - EOL Cerro Chato IV (10 MW) Eolica Cerro Chato V S.A. - EOL Cerro Chato V (12 MW) Eolica Cerro Chato VI S.A. - EOL Cerro Chato VI (24 MW) Eolica Ibirapuita S.A. - EOL Ibirapuita (24 MW) Eolica Cerro dos Trindade S.A. - EOL Cerro dos Trindade (8 MW) In August 2011, all wind power plants took part in the same competitive bidding process to sell electricity to the regulated wholesale market starting in 2014 (20-year power purchase agreements were signed guaranteeing the sale of electricity to the national grid). The average tariff offered in the bidding process by the power plants was US$ 49/MWh (BRL 96.84/MWh). The total investment in the project was estimated at US$ 208.6 million (BRL 412 million). As of October 2012, construction works were underway. The EPC contract was signed with the Argentine company IMPSA, the Portuguese Efacec and the Brazilian Iccila. Commercial operation were estimated to commence in March 2014. 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 January 2012, the sponsors applied for carbon credits. In November 2012, the state-owned bank BNDES approved the following loans to the project companies: Eolica Cerro Chato IV S.A. - US$ 11.5 million (BRL 22.4 million) Eolica Cerro Chato V S.A. - US$ 13.8 million (BRL 27 million) Eolica Cerro Chato VI S.A. - US$ 30.5 million (BRL 59.5 million) Eolica Ibirapuita S.A. - US$ 30.6 million (BRL 59.7 million) Eolica Cerro dos Trindade S.A. - US$ 9.7 million (BRL 19 million) Commercial operations commenced in early 2014.