The development of one of Brazil’s major power projects has been given a boost with the approval of a $3.1 billion financing package from the country’s development bank BNDES.
The loan will go to the ESBR consortium – led by European utility giant GDF-Suez – which is building the 3.3 GW Jirau hydropower project on the Madeira River. The project is part of government plans to expand generating capacity and improve infrastructure in the country, but has been criticised by environmental groups because of the impact it will have on the river and indigenous groups.
BNDES says that the loan will cover around two-thirds of the investment needed for the project and includes support for the transmission system linking the plant to the city of Porto Velho. The plant is scheduled to start operating in 2012.
The ESBR consortium, which also includes Chesf, Eletrosul and Camargo Correa, recently signed a contract worth $410 million with China’s Dong Fang Electric Corporation for the supply of equipment for the Jirau plant. The contract follows one signed late last year with Alstom Hydro for the supply of some of the plant’s turbines and generators.
Under a EUR300 million contracts, Alstom Hydro will manufacture and supply 28 bulb type generating units as well as speed governors, monitoring systems and bus bars. Dong Fang will supply a further 18 turbine units.
