Serra Para Wind Park

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Serra Para Participacoes, a subsidiary of the French company Voltalia, was granted authorizations to build four wind power plants located in the municipality of Serra do Mel, state of Rio Grande do Norte (99 MW in total capacity). The sponsor established four special purpose companies to lead the projects: * Usina de Energia Eólica Vila Para I S.A. - EOL VILA PARA I (27 MW) * Usina de Energia Eólica Vila Para II S.A. - EOL VILA PARA II (24 MW) * Usina de Energia Eólica Vila Para III S.A. - EOL VILA PARA III (24 MW) * Usina de Energia Eólica Vila Amazonas V S.A. - EOL VILA AMAZONAS V (24 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in August 2014. The total investment in the power plants was estimated at US$ 116.1 million (BRL 406 million). Financial closure was achieved in April 2016, when the sponsor issued US$ 65.8 million (BRL 230 million) 1-year bonds (BRL57.5m for each of the 4 SPVs). The remaining US$ 50.3 million (BRL 176 million) investment cost was equity financed. The four power plants won the public bidding for the sale of energy to the country´s distribution companies run by the government that took place in 2013, by offering an average tariff of US$ 32.4/MWh (BRL 120.06/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies , and the agreements included the annual adjustment of the tariff to the inflation rate. The sponsors committed to start supplying the market in 2018. The projects were 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 sector taxes.