Tres Irmaos Hydro Power Plant

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In March 2014, the Brazilian consortium Novo Oriente (Furnas – 49.9% and Investment Fund Constantinopla – 50.1%) was awarded in a competitive bidding process the contract to operate the Tres Irmaos hydro power plant (807 MW) located at the Tiete River, state of Sao Paulo. The names of other bidders were not disclosed. UHE Tres Irmaos became operational in November 1993, and was under the management of the Brazilian state-owned company CESP, but this initial concession contract expired in 2011. CESP indicated to the federal government it had no interest in renewing the concession contract. The bidding criteria set by the regulatory agency ANEEL was the lowest revenue. Novo Oriente presented the winning bid, a value of US$ 13.4 million/year (BRL 31.6 million/year), 0,1% below the ceiling set by the regulatory agency. In July 2014, Investment Fund Constantinopla sold its stake in the project company to the Brazilian company Triunfo Participacoes. The 30-year contract period was signed in September 2014, and the sponsors took over the assets in October 2014. The special purpose company Tijoa Participacoes e Investimentos Ltda was created to manage the project. The sponsors committed to sell 100% of the output to the regulated market.