Brazil auctions major hydroelectric contract
Published December 11th, 2007
Brazil planned to sell the right to build a 12-billion real ($6,8bn) hydroelectric project yesterday, reviving plans for large-scale dams in the Amazon to meet the energy needs of Latin America’s biggest economy.
Paris-based Suez, Endesa of Spain and units of Centrais Eletricas Brasileiras, (Eletrobras), the state-controlled utility holding company, are among qualified bidders. The winner of a 30-year concession to build and run the 3140MW Santo Antonio plant on the Madeira River must offer the lowest price for electricity.
Santo Antonio is Brazil’s first major hydroelectric project in 13 years, the first of three Amazon river dams that the government hopes will ease the need for fossil fuels. Brazil stopped building large dams in the 1990s as concern rose about their effect on the environment and public finance. The 14000MW Itaipu dam alone saddled Eletrobras and the government with $20bn in debt.
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