Authorities Claim Victory in Hydroelectric Auction

Brazil's power regulator Aneel on Friday awarded 11 concessions to build and operate hydroelectric plants for 35 years, for a combined potential of 2,666MW. Nine of the 11 projects registered premiums on the minimum price, with the Couto Magalhaes plant attracting a bid from the Ener-Rede Couto Magalhaes consortium of more than 3,000% beyond the minimum. "It was a victory for the Brazilian power sector, with enormous premiums and large companies participating, much more than we expected," energy & mining minister Jose Jorge said. The projects and winning bidders are: - Group A (Simplicio 323MW), awarded to Lidil Comercial Ltda, only company to participate, controlled by French firm EDF, with a 1.1mn reais per year offer and an investment of 783.8mn reais. The plant is located on the Paraiba do Sul River, in Minas Gerais state. The company is contracted to operate the plant for an 84-month concession. - Group B (Salto Pilao 181 MW), awarded to Grupo Empresarial Salto Pilao, firmed by the CPFL companies CPFL-Geracao de Energia, Alcoa Aluminio, Camargo Correa Cimentos, DME Energetica Ltda and Votantim Cimentos, with a 17mn reais a year offer, 2,437% over the minimum. The plant is located on the Itajai River in Santa Catarina state with an expected invested of 309mn reais. The company is contracted to operate the plant for 72 months. - Group C (Complejo Sao Joao 60 MW/Cachoeirinha 45 MW), awarded to Enterpa Engenharia with an offer of 1.6mn reais a year, a 357% premium. The plant is located over the Chopim River in Parana state, with expected investment in S. Joao of 107.6mn reais, and in Cachoeirinha of 88.9 reais. The company is contracted to operate the plant for 60 months. - Group D (Sao Salvador 241MW), awarded to Tractebel with an offer of 18.5mn reais, a 1,868% premium. The plant is located over the Tocantins River in Tocantins state, with an expected investment of 480mn reais. The company is contracted to operate the plant for 72 months. Group E (Monjolinho 67MW), awarded to Engevix Engenharia with an offer of 2.4mn reais a year, 757% over the premium price. The plant is located on the Passo Fundo River in Rio Grande do Sul, with an expected investment of 168mn reais. The company is contracted to operate the plant for 72 months. - Group F (Pedro do Cavalo 160MW), awarded to Votorantim Cimentos with an offer of 10mn reais, 2,677% over the premium price. The plant is located on the Paraguacu River in the state of Bahia, with an expected investment of 177mn reais. The company is contracted to operate the plant for 48 months. - Group G (Traira II 60MW), awarded to Cemig with an offer of 4.8mn reais, a 2,300% premium. The plant is located on the Sapucai Grande River in Minas Gerais, with an expected investment of 97.3mn reais. The company is contracted to operate the plant for 60 months. - Group H (Pai Quere 292MW), awarded to Grupo Empresarial Pai Quere, made up of the companies CPFL-Geracao de Energia, Alcoa Aluminio, CEEE, DME Energetica and Votorantium Cimentos, with an offer of 1.2mn reais a year. The plant is located on the Pelotas River in Santa Catarina and Rio Grande do Sol with an expected investment of 583mn reais. The company is contracted to operate the plant for 84 months. - Group I (Couto Magalhaes 150 MW) awarded to the Ener-Rede Couto Magalhaes consortium of Celtins and Eletropaulo, with an offer of 18.5mn reais a year; a 3,089% premium. The plant is located on the Araguaia River in Goias with an expected invested of 245mn reais. The company is contracted to operate the plant for 60 months. - Group J (Santa Isabel 1,087 MW) awarded to the GESAL consortium of Billiton Metais, Companhia Vale do Rio Doce (CVRD), Camargo Correa, Alcoa Aluminio and Votorantim Cimentos, with an offer of 61mn reais a year, 1,694% over the minimum. The plant is located on the Araguaia River in Tocantins, with an expected investment of 1,800mn reais. The company is contracted to operate the plant for 84 months.