Tiangua Wind Farm

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The Brazilian company Energimp S.A., a joint-venture company owned by Argentine group IMPSA (55%) and the state-owned Federal Retirement Fund FI-FGTS (45%), was granted the authorizations to build five wind power plants located in the state of Ceara (150 MW in total capacity). The 20-year contracts were signed with the regulatory agency ANEEL in July 2011. The sponsors created the special purpose companies to manage the power plants: Nova Vento Formoso Energias Renovaveis S.A. - EOL Vento Formoso (30 MW) Nova Ventos do Morro do Chapeu Energias Renovaveis S.A. - EOL Ventos do Morro do Chapeu (30 MW) Nova Ventos de Tiangua Energias Renovaveis S.A. - EOL Ventos de Tiangua (30 MW) Nova Ventos de Tiangua Norte Energias Renovaveis S.A. - EOL Ventos de Tiangua Norte (30 MW) Nova Ventos do Parazinho Energias Renovaveis S.A. - EOL Ventos do Parazinho (30 MW) In August 2010, all five wind power plants had taken part in the same competitive bidding process to sell electricity to the regulated wholesale market (20-year power purchase agreements were signed guaranteeing the sale of electricity to the national grid). The average tariff offered in the bidding process by the power plants was US$ 67.4/MWh (BRL 133,22/MWh). In November 2014, Energimp sold the project to Ventos de Sao Jorge Energias Renovaveis S.A., a subsidiary of the Brazilian company Salus Fundo de Investimentos e Participacoes. The total investment in the project was estimated at US$ 209.8 million (BRL 700 million). The construction works commenced in August 2015 and were in advanced stages as of December 2015. 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, companies were allowed to use accelerated depreciation methods of accounting for construction expenditures. Finally, the electricity sold were not subject to sectoral taxes. In November 2014, Salus Investment fund acquired Energimp's shares in the project. As of December 2016, Salus owned 100% of the shares of the project companies.