Sao Roque Hidro Power Plant

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In December 2011, the Brazilian company Desenvix Energias Renovaveis, a subsidiary of Jackson Empreendimentos, was awarded in a competitive bidding process the contract to build and operate a 135 MW hydro power plant located in the Canoas River, state of Santa Catarina. The power plant was named UHE Sao Roque. Besides Triunfo, four other companies took part in the bidding contest: Spanish company Alupar, Consorcio Araca (Brazilian state-owned companies Eletrosul, 49%, and Copel, 51%), Consorcio UHE Garibaldi (Brazilian companies Neoenergia, 51%, and state-owned Cemig Geracao, 49%), and Gaia Energia. The bidding criteria set by the regulatory agency ANEEL was the lowest tariff. Desenvix presented the lowest offer, a value of US$ 38.7/MWh (BRL 91.2/MWh), 25.9% below the ceiling set by the regulatory agency. The contract was signed in August 2012, and sponsors created the company Sao Roque Energetica to lead the project during the 35-year contract period. The sponsor committed to invest US$ 297.4 million (BRL 700 million) in the power plant. In November 2013, the sponsor was granted a US$ 119 million (BRL 420 million) loan from state-owned bank BNDES and a US$ 59.8 million (BRL 420 million) loan from another state-owned bank named BRDE. The remaining cost was set to be financed with sponsor' internal resources. Sao Roque Energetica committed to sell 90% of the output to the regulated market (a 30-year power purchase agreement was signed) and the remaining 10% to the unregulated market. Construction works began in November 2013. Commercial operation was expected to commence in April 2015 with the sale of electricity to the unregulated market. The sale of electricity to the distribution companies was set to begin in 2016. 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. In August 2014, the state-owned bank BNDES approved a US$ 118.6 million (BRL 267 million) to CAB Cuiaba.