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Grupo Rede mulls sale of 880MW in generation assets - Brazil

Published: Monday, March 22, 2004 17:59 (GMT -0400)More news from Brazil

By Business News Americas staff reporters

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Brazilian power distribution holding Grupo Rede is studying the sale of 880MW in generation assets as part of plans to concentrate on its distribution operations, Canal Energia news service reported.

Grupo Rede controls 28 small-scale generation projects and has interests in six medium and large-scale generation plants. The group has been rearranging its assets since end-2003, Canal Energia said.

The company plans to make its management more transparent, comply with new power sector rules that separate distribution from other assets and tap into national development bank BNDES's financing for the sector.

The company plans to invest 150mn reais (US$51.5mn) in its eight distribution companies in 2004. Grupo Rede controls large state-wide distributors Cemat in Mato Grosso state, Celpa in Para state, Celtins in Tocantins state, as well as small distribution utilities Cauiá, Bragantina, Nacional, Vale Paranapanema and Força e Luz do Oeste in Sao Paulo state.

Grupo Rede also has interests in the generation plants of Juba I and Juba II, each with 42MW installed capacity in Mato Grosso state, in the 30MW Curuá-Una in northern Pará state and in the 55MW Rosal in Espírito Santos state. It also has stakes of 44.9% in the 902MW Lajeado dam and of 64% in the 124.4MW Guaporé dam in Mato Grosso.

Grupo Rede officials were unavailable for comment on Monday.

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