The China Three Gorges Group signed Tuesday with the Brazilian Ministry of Mines and Energy contracts relating to two hydroelectric concessions in the country, according to news agency Brasil.

The signing is the culmination of an auction in which the Chinese group paid 13.8 billion reais (US$3.66 billion) to be awarded management of two major hydroelectric plants in Brazil.

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.

The Brazilian Ministry of Mines and Energy on Tuesday also signed concession contracts for 29 hydropower plants also submitted to auction in November.

The two dams that will be managed by China Three Gorges are the largest of the group 29, with the Brasil news agency adding that the Chinese company would be the first foreign company to take over the management of a hydroelectric production unit in Brazil on its own. (macauhub/BR/CN)