Verde 4A Small Hydro Power Plant

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In May 2005, the Brazilian company DM Construtora de Obras Ltda was granted the 30-year contract to build and operate the Verde 4A Small Hydro Power Plant (28 MW) located at the municipalities of Ribas do Rio Pardo and Agua Clara, state of Mato Grosso (Verde River). The power plant was named PCH Verde 4A. In June 2014, DM Construtora de Obras sold 100% of its shares to Phoenix Geracao de Energia. In February 2015, Phoenix Geracao de Energia sold 100% of its shares to Perola Energetica S.A, a subsidiary of Brookfield Energias Renovaveis. In April 2015, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2020. The company presented a winning bid of US$ 61.9/MWh (BRL 206.49/MWh). The investment committed to the power plant was estimated at US$ 80.3 million (BRL 268 million). Construction works commenced in August 2015 and were in its final stages as of June 2017. Financing information was not available. The company 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.