Eletrobras: EDF not prone to leave Brazil

The president of Brazil's federal power holding company Eletrobras said on Tuesday that French electricity giant Electricite de France (EDF) "doesn't seem prone" to leave Brazil. EDF is the controller of Light, the cash-strapped Rio de Janeiro utility. Eletrobras President Luiz Pinguelli Rosa met earlier in the day with EDF's strategy director Gerard Creucet. Rosa noted that Light has an investment budget for this year. "They are investing in the Paracambi plant," he said, referring to a hydroelectric plant EDF is constructing in the interior of Rio de Janeiro state. According to Rosa, foreign investors should not expect fast returns in Brazil. EDF, as well as US companies Enron and AES, he said, were expecting to see returns of 15% to 20%. "In my opinion, that's unrealistic. In France, utility returns range from 5% to 10%, but the risk is very low," he said.