Portugal’s EDP group to invest 400 million euros in Brazil

18 December 2012

EDP – Energias do Brasil, a subsidiary of Portuguese power group EDP – Energias de Portugal, plans to invest 1.1 billion reals (400 million euros) in building the Cachoeira Caldeirão hydroelectric facility in Brazil, the group said in a statement issued in Lisbon.

The future hydroelectric plant, which was awarded to EDP – Energias do Brasil in an auction held last Friday by Brazilian electricity regulator Agência Nacional de Energia Eléctrica do Brasil (Aneel), will be built on the Araguari river, in the Brazilian state of Amapá. It will also boost the company’s involvement in the power production market.

The project will need estimated investment of 1.1 billion reals, 16 percent of which will be invested in 2013, 43 percent in 2014, 35 percent in 2015 and 6 percent in 2016. It is expected to be 60 percent funded by long term debt.

In the statement filed with Portuguese stock market regulator, CMVM, EDP – Energias do Brasil also said that the conditions of the contract with Aneel included the sale of an average 129.7 megawatts of power over a 30-year period as of January 2017. (macauhub)