China’s CITIC to finance Brazilian thermoelectric power plant in Rio Grande do Sul

13 June 2006

Porto Alegre, Brazil, 13 June – Chinese financial group CITIC (China International Trust and Investment Corporation) is set to finance the Candiota III thermoelectric power plant located in the state of Rio Grande do Sul, Brazil, official said Tuesday.

A statement from the Brazilian government said that work on the plant, with a production capacity of 350 MW, would cost around US$348 million and would be financed by CITIC.

The project will be built by Brazilian power generation company Companhia de Geração Térmica de Energia Elétrica (CGTEE) and is expected to be concluded in 2010, when it will begin supplying electricity.

CGTEE has three power plants, namely in Presidente Médici (446MW), São Jerônimo (20MW) and NUTEPA (24MW).

The new plant will consume around 3 million tons of coal per year, which will be supplied by Rio Grande mining company, Companhia Riograndense de Mineração (CRM).

CRM will invest US$8.72 million in increasing its coal production by 162.5 percent in order to supply Candiota III.

From its current annual production of 1.6 million tons of coal per year, CRM will raise production to 4.2 million tons per year.(macauhub)