Termonorte Project

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Termonorte is a joint-venture of El Paso International (40%) and C&S Participacoes (60%). The Termonorte Project is divided into two phases. Phase I involves the construction of a diesel-fired power plant with a capacity of 64 MW and construction cost of US$ 60 million. A 10-year power purchase agreement was signed between Termonorte and Electronorte for the power generated by this unit (January 2000). The second phase involves a natural-gas combined cycle power plant with capacity of 345 MW and construction costs of US$ 220 million. Eletronorte has also signed a power purchase agreement for this second phase (May 2000). The construction works on the first phase started in January 2000 and were concluded in July 2000. Works on the second phase (Termonorte II) were conclude in mid-2003. El Paso Corporation principally conducted their Brazilian development activities within an investment arm called Gemstone. El Paso Corp. owned approximately 50% of Gemstone, which, in turn, owned 50% of Porto Velho (Termonorte Project). Gemstone Investors, an unrelated party capitalized by private equity (Rabobank International) and debt, owned the remaining 50 percent of Gemstone. In March 2009, Termogas S.A., a company owned by CS Participacoes (75%) and Termopar (25%), acquired 70% of Termonorte. The remaining shares were acquired PB Participacoes (30%). Sponsor name needs to be changed