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14 December 2007 - Suez Energy International has signed a Shares Purchase Agreement for the acquisition of 100 per cent of Ponte de Pedra, a 176 MW hydro power plant on the Correntes River, between the States of Mato Grosso do Sul and Mato Grosso, Brazil. The transaction amounts to €228.6m ($334m).
The plant is in commercial operation since September 2005 and was owned by Impregilo, an Italian engineering company and Skanska, a Swedish construction group. Ponte de Pedra will be owned by Suez Energy International's controlled company in Brazil Tractebel Energia, the largest private electricity producer in Brazil, with 6870 MW installed capacity or seven per cent of the power generation market of Brazil. The transaction is conditioned to the approval of the Brazilian authorities, expected for February 2008.
Ponte de Pedra is a run of the river plant, with a small reservoir, and is connected to the Brazilian interconnected system through a 140 km transmission line of 230 KV. The concession contract is valid until 2034, with the possibility for an additional 20-year renewal.
The total output of the power station is sold until 2025 under a 20-year Power Purchase Agreement with Cemig, a Brazilian state distribution company. The construction was financed by BNDES, the Brazilian development bank, under a project finance scheme.
The plant is eligible for CDM (clean development mechanism), and an application will be filed for credits of 3,100,000 tons of CO2.
Dirk Beeuwsaert, CEO of Suez Energy International: "The acquisition of Ponte de Pedra is in line with our growth objectives in the Brazilian power generation sector through sustainable and renewable sources of energy. We are also looking to bid the coming year for other power projects; these will be necessary to help sustaining Brazil's growth potential in the coming years".
Manoel Zaroni, CEO of Tractebel Energia, added: "Tractebel Energia is confirming its vocation for growth, and Ponte de Pedra is a good addition to the portfolio of the company. It comes with a contract which provides a secured cash flow and will be an interesting contributor to Tractebel Energia's business."
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