Chinese group SPIC to compete for management of a new hydroelectric facility in Brazil

20 June 2018

China’s State Power Investment Corporation (SPIC) is expected to submit a proposal for the management of the Santo António hydroelectric project in the state of Rondonia, Brazil, at an auction in July, the Reuters news agency reported.

Sources quoted by the agency said that SPIC leaders had held talks with shareholders Companhia Energética de Minas Gerais (Cemig) and the Odebrecht group in 2017, but they gave up when they decided to bid for another auction.

In September 2017, the Chinese group acquired a license to operate the São Simão hydroelectric plant, with a production capacity of 1.7 gigawatts, with a proposal of 7.18 billion Reais (US$1.198 billion).

In the same month, the group presented a proposal to buy the stake of Companhia Energética de Minas Gerais (Cemig) in the Santo António hydroelectric project, which was presented by State Power Investment Overseas Co., a Chinese investment subsidiary.

The Brazilian press has reported that both Cemig and the Odebrecht group, two of the largest shareholders in the Santo António hydroelectric project, have been trying to sell their respective holdings.

The Santo António hydroelectric project is being developed by the Santo António Energia consortium, which includes Brazilian companies Furnas Centrais Eléctricas (39%), Odebrecht (18.6%), Cemig Geração e Transmissão (22.4%) and Amazónia Energia (20%).

The head of the Chinese group for Brazil, Adriana Waltrick, recently told Reuters the group intended to expand its business in Brazil, “a country that is one of the main regional priorities for the group’s expansion.”

The Chinese group, which controls a hydroelectric power plant in the central/western region and two wind farms in the Northeast with a production of two gigawatts, plans to expand its global electric power production capacity by 30 gigawatts, according to Waltrick.

The State Power Investment Corporation group is, according to Wikipedia, one of the five largest state power generation groups in the People’s Republic of China. (macauhub)

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