Serra Da Mesa Hydroelectric

active

The 1,275-MW Serra Da Mesa power plant was one of the 12 Brazilian energy projects initiated in the late 1980's and suspended due to insufficient public sector resources. The project is owned by VBC Energia (former Serra Da Mesa Energia) (51.49%) and Brazilian state-owned Furnas Centrais Electricas (48.46%). Serra Da Mesa Energia, previously known as Dynamis Energetica or Nacional Energetica, was established in 1994 as an independent power company who was owned by Furnas Centrais Electricas. Serra Da Mesa Energia was sold to a newly Brazilian private consortium CPFL Energia for $172 million in March 1997. As of 2009, CPFL held 51.54% of the shares in the hydropower project. Still, by 2009, the project operation remained under control of Furnas. Under the sale agreement, Furnas owns the rights to 48% of Serra Da Mesa's power output until 2008, but VBC Energia owns 51% of the power production for 30 years. The total cost of the project is estimated at $737 million. The hydroelectric plant finished its construction late 1997 and began commercial operation in April 1998. In Nov. 1999, MIGA issued a US$ 100 million guarantee to CPFL Energia (this loan will finance three of CPFL Energia's projects: Serra da Mesa, Companhia Paulista de Forca e Luz and Rio Grande Energia). In 2004, a new concession contract was signed for the duration of x years. The contract length was then extended to 35 years in 2011.