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Celpa to cede 30MW plant as Eletronorte debt payment - Brazil

Published: Monday, May 30, 2005 14:59 (GMT -0400)More news from Brazil

By Business News Americas staff reporters

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Generation - Hydro | Financing

Brazilian power company Celpa has agreed to transfer control of its 30MW Curuá-Una hydroelectric plant to federal power company Eletronorte as partial payment of a 153mn-real (US$64mn) loan, Celpa told the São Paulo stock exchange.

The plant was appraised at 75mn reais and the outstanding debt will be paid in 24 monthly installments, Celpa said.

Celpa produces and distributes power in Brazil's northern state of Pará. Brazilian power group Grupo Rede, which recently announced its intention to sell off its generation operations to concentrate on distribution, controls the company.

Rede is also in talks to sell its stakes in the 120MW Guaporé and 902MW Lajeado hydroelectric plants to federal power company Furnas.

Eletronorte is controlled by federal power holding company Eletrobrás, has installed capacity of 6,779MW and operates in the country's northern region.

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