Vamcruz Wind Park

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Envolver Participacoes, a partnership of the French company Voltalia (50%) and the Brazilian company Encalso Construcoes (50%), and the state-owned company Chesf were granted authorizations to build four wind power plants located in the municipaliteis of Jijoca de Jericoacoara and Cruz, state of Ceara (93 MW in total capacity). The partners established four special purpose companies to lead the projects (Envolver - 51%; Chesf - 49%): * Usina de Energia Eolica Junco I S.A. - EOL JUNCO I (24 MW) * Usina de Energia Eolica Junco II S.A. - EOL JUNCO II (24 MW) * Usina de Energia Eolica Caicara I S.A. - EOL CAICARA I (27 MW) * Usina de Energia Eolica Caicara II S.A. - EOL CAICARA II (18 MW) The 35-year contracts were signed with the regulatory agency ANEEL starting in June 2012. The total investment in the power plants was estimated at US$ 124.5 million (BRL 370.5 million). The four power plants won the public bidding for the sale of energy to the country´s distribution companies run by the government that took place in December 2011, by offering an average tariff of US$ 36.3/MWh (BRL 108/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies , and the agreements included the annual adjustment of the tariff to the inflation rate. The sponsors committed to start supplying the market in 2016. The projects was 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, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures. Finally, the electricity sold by the company is not subject to sector taxes. In June 2015, the sponsors requested the transfer to the project to the municipality of Serra do Mel (state of Rio Grande do Norte). The wind farm's name changed to Vamcruz. In September 2015, the state-owned bank BNDES approved a US$ 81.8 million (BRL 273 million) to the project.