A France-based utility fills the void in a consortium for a 400 MW hydroelectric project in Brazil on the Teles Pires River in the state of Mato Grosso. Brazilian company Alupar Investimento SA, which held a 51% stake in a consortium, decided to exit the project in August.
Two units of Brazilian state-controlled electric utility Eletrobras, EletroNorte and Companhia Hidro-Elétrica do São Francisco (CHESF) have re-formed a consortium with Électricité de France (EDF).
EDF announced on Dec. 12 that it has acquired a 51% stake in the SINOP Energy Co., which is building the dam.
EDF did not indicate the cost of its acquisition, but EletroNorte and CHESF, each have a 24.5% stake.
The Federal Regional Court of Brazil’s First Region suspended an injunction issued earlier in the year banning construction of the dam’s hydroelectric power plant on July 10, by Federal Court Judge José Roberto Machado Farias.
Construction of the SINOP Dam initially began in March and is expected to begin generating power in the second half of 2017, according to published reports.
The facility is part of Brazil’s US$878 billion continuation of it Growth Acceleration Program (PAC-2), which consists of a set of economic policies and investment projects that have the objective of accelerating economic growth in Brazil. Brazilian media reports loss of the SINOP project would adversely impact environmental and economic aspects of society.
Reports indicate Brazil's government has approved the project's environmental and societal study plans, that have programs in place to compensate local residents affected by the dam's construction and preserve the area’s flora and fauna.
The original program, PAC-1, began in 2007 with a budget of US$503 billion earmarked for 2007-2010.