Viana Thermal Power Plant

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The company Termeletrica Viana S.A., a wholly-owned subsidiary of Wartsila, was granted an authorization by the regulatory agency ANEEL to build a 174.6-MW thermal power plant located in the state of Espirito Santo(municipality of Viana). The thermal power plant was set to use heavy oil as fuel. In June 2007, the company took part in a competitive bidding process to sell electricity to the regulated wholesale market (a 15-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). Of the 174.6 MW of electricity produced, 121 MW was the capacity committed to the referred power purchase agreement. In January 2008, Termeletrica Viana signed a 35-year contract with ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. In February 2008, Wartsila sold 80.1% of the shares in the project company to FIP Brasil Energia. Termeletrica Viana committed to invest US$ 150 million (BRL 300 million) in the facility. Although the construction works started in September 2008, financial closure for the project was only achieved in July 2009, when the company was granted a US$ 111.9 million (BRL 223.8 million) loan contract from BNDES, a state-owned development bank. Construction works on this plant were concluded in December 2009.