Teles Pires HPP

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In December 2010, the Brazilian consortium Teles Pires Energia Eficiente (Iberdrola's subsidiary Neoenergia, 50,1%, state-owned Eletrosul, 24,5%, state-owned Furnas, 24,5%, and Odebrecht, 0,9%) was awarded in a competitive bidding process the contract to build and operate a 1820 MW hydro power plant located in the Teles Pires River, between the states of Para and Mato Grosso. Besides Teles Pires Energia Eficiente, three other companies took part in the bidding contest, but the names of the other bidders were not released. The bidding criteria set by the regulatory agency ANEEL was the lowest tariff. Teles Pires Energia Eficiente presented the lowest offer, a value of US$ 34.7/MWh (BRL 58.36/MWh), 33% below the ceiling set by the regulatory agency. The contract was signed in June 2011, and sponsors created the company Companhia Hidreletrica Teles Pires to lead the project during the 35-year contract period. Companhia Hidreletrica Teles committed to sell 85% of the output to the regulated market (a 30-year power purchase agreement was signed) and the remaining 15% to the unregulated market. Environmental regulator, Ibama, awarded an environmental license for the project in August 2011. Construction works stated in August 2011, and commercial operations were expected to commence by 2015. The sponsor committed to invest US$ 1.9 billion (BRL 3.7 billion) in the power plant. As of August 2011, construction works had not commenced. The Consorcio Construtor Teles Pires comprised by Norberto Odebrecht, Voith and Alstom Hydro Energia Brasil Ltda was hired in November 2011 to conduct EPC works for the project. In December 2011, the state-owned development bank BNDES granted a US$ 275.7 million (BRL 450 million) loan to the project company, but financial closure for the project was only achieved in September 2012, when BNDES approved an additional US$ 1235 million (BRL 2412 million) loan package to the project. http://www.brightwire.com/news/33574