Termofortaleza

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The project comprises the construction and operation of a 310MW thermal power plant (natural gas) in Porto Pecem, state of Ceara. The company responsible for the project is Central Geradora Termeletrica Fortaleza SA (CGTF), a special purpose company owned by Endesa International (51%) and Enersis SA (49%). The construction works started in May 2002 and the plant started operations in December 2003. The total cost of the project was estimated at US$250 million. By May 2003, Termofortaleza had signed a 20-year PPA to sell its entire output to Companhia Energetica do Ceara (Coelce) under a take-or-pay contract. The plant had also signed GSAs with Cegas and Petrobras. Termofortaleza was part of a priority program for thermal power plants (Programa Prioritario de Termeletricas), implemented by the Brazilian federal government in 2000. The program, in order to foster the construction of thermal power plants, guarantees natural gas supply for 20 years, provides financing for the construction of the plants (throught the Brazilian Development Bank, BNDES) and provide subsidies for gas transportation costs. In May 2003, the International Finance Corporation proposed a US$362.5 loan for the project (US$62.5 A Loan and US$112.5 Bloan) but as of December 2003 it was pending signing.