Portugal’s EDP to invest 1.2 billion euros in Brazil

23 January 2007

Lisbon, Portugal, 23 Jan – Portuguese electricity company, EDP plans to invest 1.2 billion euros in Brazil in the 2007-2020 period, the company’s chairman, António Mexia said in Lisbon Monday.

Most of the investments announced by EDP, of 6.4 billion euros, will be applied in gas projects, renewable energy sources in Spain, Portugal , France and Belgium, as well as in power distribution.

Of the total funds earmarked for Brazil, António Martins da Costa, chairman of subsidiary, Energias do Brasil, explained that resources would be spent on maintenance as well as on expanding the customer services of distribution companiesEscelsa (Espírito Santo), Enersul (Mato Grosso do Sul) and Bandeirante (São Paulo).

For generation in Brazil, the target is to build small hydroelectric dams, the number of which will increase from 12 to 20 facilities by 2010, as well as marginally increasing the installed capacity of existing dams. The investment will also include the construction of a thermal plant.

“With these 1.2 billion euros, which are the equivalent of around 4 billion reals, we will increase installed capacity from the current 1,043 megawatts to 1,543 megawatts,” said da Costa.

Martins da Costa said that in order to finance the 1.2 billion euros, the company would use credit lines, mainly from Banco Nacional de Desenvolvimento Económico e Social (BNDES) and cash resources, in a ration of 70 percent to 30 percent, respectively. (macauhub)