Ype Small Hydro Power Plant

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In February 2014, the Brazilian company Santa Helena Energia S.A, a subsidiary of Amparo Energia Investimentos e Participacoes Ltda., was granted the 35-year contract to build and operate the Ype Small Hydro Power Plant (30 MW), located at the municipality of Santa Helena de Goias, state of Goiás (Verde River). The power plant was named PCH Ype. In August 2013, the company had been granted power purchase agreements to sell electricity to distribution companies starting in 2018. The company presented a winning bid of US$ 55.7/MWh (BRL 131.2/MWh). The investment committed to the power plant was estimated at US$ 43.3 million (BRL 149.4 million). Financial closure was achieved in December 2016, when the sponsor was granted a US$ 32.7 million (BRL 113 million) loan from the Brazilian bank BNDES. The remaining investment was financed with the sponsor’s equity. 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.