Energias do Brasil announces two joint-venture power plants

26 July 2007

Sao Paulo, Brazil, 26 July – Energias do Brazil has signed a partnership accord with Brazil’s MPX Mineração to build two thermal power stations in northeast Brazil, company sources said.

Energias do Brasil, a subsidiary of Portugal’s EDP group, said Wednesday that the deal involved the building of a 350 megawatt plant in the state of Maranhão and a 700 megawatt power station in the state of Ceara.

Both firms hold equal 50 percent stakes in the ventures, aimed to “combine efforts to develop the two thermal plants, which will run on imported coal.”

Under the accord, MPX will pay Energias do Brasil 2.5 million reais for rights from the Maranhão project, in addition to 7.5 million reais for the sale of power.

In turn, Energias do Brasil will pay MPX 5 million reais for rights to the Ceara project plus 15 million reais to market power .

Energias do Brasil has controlling stakes in distribution firms Bandeirante, Enersul and Escelsa, energy trading firm Enertrade and generating companies Energest, Enerpeixe and EDP Lajeado. (macaubub)