China Three Gorges pay US$3.66 billion for the concession of two dams in Brazil

26 November 2015

The China Three Gorges Group paid 13.8 billion reais (US$3.66 billion) for the concession of two major hydroelectric power plants in Brazil, said Wednesday in São Paulo the National Electrical Energy Agency (Aneel ).

The two hydroelectric plants – Jupiá and Ilha Solteira – belonged to the São Paulo energy company CESP and were taken to auction by the federal government after the previous concession contract ended.

The Chinese group was the only entity to submit a proposal for the concessions of Lot E, although analysts had expected at least one other competitor.

Overall, the Aneel expects to raise up to 17 billion reais (US$4.5 billion) if all the auction lots, comprising 29 hydroelectric facilities, are auctioned off.

The China Three Gorges Group operates the largest hydroelectric plant in the world, the Three Gorges Dam, and in Brazil partners EDP – Energias do Brazil, of the EDP – Energias de Portugal, of which China Three Gorges is the largest individual shareholder.

The contracts have a concession period of 30 years from the date of signing, scheduled for 30 December, when the winning companies have to pay 65 percent ​​of the total. (macauhub/BR/CN/PT)