Santo Antonio Power Plant

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In December 2007, Consorcio Madeira Energia, which was formed by state-owned Furnas Centrais Eletricas (39%), Odebrecht (18,6%), Andrade Gutierrez (12,4%), state-owned Cemig (10%) e the investment fund comprised by Banif and Santander (20%), was awarded in a competitive bidding process the 35-year contract to build and operate a 3.15 GW hydro power plant located in the Madeira River, state of Amazonas. Besides Consorcio Madeira Energia, two other consortium of companies took part in the bidding contest: Ceisa , which was comprised by state-owned Chesf (49%), CPFL Energia (25,05%), the Spanish company Endesa (25,05%) and Camargo Corrêa (0,9%); and CESB, formed by Suez (51%) and state-owned Eletrobrás (49%). The bidding criteria set by the federal regulatory agency ANEEL was the lowest tariff. Consorcio Madeira Energia presented the lowest offer, a value of US$ 40.4/MWh (BRL 78.87/MWh), 35% below the ceiling set by the regulatory agency. The contract was signed in June 2008, and sponsors created the company Santo Antonio Energia to lead the project during the 35-year contract period. Santo Antonio Energia committed to sell 70% of the output to the regulated market and the remaining 30% to the unregulated market. Environmental regulator, Ibama, awarded an environmental license for the project in July 2007. The Consorcio Construtor Santo Antônio comprised by Norberto Odebrecht, Andrade Gutierrez, Alstom Hydro Energia Brasil Ltda., Bardella S.A. Industrias Mecânicas, Areva Transmissao e Distribuicao de Energia, Siemens Ltda., VA Tech Hydro Brasil Ltda. and Voith Siemens Hydro Power Generation Ltda was set to conduct EPC works for the project and supply equipment. The sponsor committed to invest US$ 6.8 billion (BRL 13.5 billion) in the power plant. Financial closure was achieved in January 2009, when the sponsor was granted a US$ 3.1 billion (BRL 6.1 billion) loan from BNDES. About half of the loan granted by BNDES was comprised by the bank’s own funds, while the rest was syndicated from other financial institutions (Itau Unibanco, Santander, Caixa Economica Federal, Banco do Brasil, Banco da Amazonia, Banco do Nordeste do Brasil, Bradesco and Banco do Espírito Santo). The remaining cost was set to be financed with the sponsors’ internal resources. Construction works commenced in early 2009 and operations were expected to begin by 2012. As of July 2010, 29.6% of the works had been concluded. Operations commenced in March 2012. In January 2013, the sponsors issued US$ 178.7 million (BRL 420 million) in long-term bonds; in May 2014, two new bond issuances took place at a total value of US$ 297.8 million (BRL 700 million).