Petrobras, Eletrobrás to sign power generation accord Wed

Brazil's federal energy company Petrobras (NYSE: PBR) and federal power holding company Eletrobrás will sign an agreement on Wednesday to develop joint power generation ventures in Brazil and abroad, a spokesperson for the mines and energy ministry told BNamericas. The agreement will create a joint commission made up of five representatives from the research and planning centers of each company to study investment possibilities. The agreement, to be signed by Petrobras CEO José Gabrielli and Eletrobrás CEO Aloísio Vasconcelos, will initially aim to identify thermoelectric generation projects, the spokesperson said, declining to give details. Petrobras has interests or controls 16 thermoelectric power generators in Brazil, while a small percentage of Eletrobrás' 57,000MW installed capacity comes from thermoelectric power plants, mostly in the country's northern region. The announcement comes as the government has bolstered the role of federal power companies in the country's generation sector.