Brazil postpones Angra 3 nuclear project

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Monday, November 21, 2016

Brazil's Angra 3 nuclear power plant will not be ready before 2021, according to state-run power group Eletrobras.

The company will decide on a new working schedule for the plant by next month, CEO Wilson Ferreira told reporters.

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Construction work on the 1.35GW Angra 3 plant near Rio de Janeiro was halted in September last year pending an internal probe into corruption.

Originally slated to begin operating this year at a cost of 10bn reais, the project is now estimated to require 19.6bn reais (US$5.87bn).

See BNamericas' Angra 3 risk analysis here

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Meanwhile, Eletrobras could take legal action for losses stemming from corruption in construction contracts for the Belo Monte hydroelectric plant in the Amazon rainforest, Ferreira said.

Last week Brazil's antitrust authority Cade said it signed a leniency deal with building firm Andrade Gutierrez after the latter admitted to forming a cartel for the Belo Monte project.

See BNamericas' Belo Monte risk analysis here

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And Eletrobras will save 920mn reais (US$290mn) annually by cutting 13,000 jobs over the next two years, according to Ferreira.

Some 13,000 workers, around 30% of the company's staff, are expected to accept voluntary redundancy packages, according to the Rio de Janeiro-based company.