The Brazilian Development Bank (BNDES) has signed a 373 million Brazilian reais (US$115 million) loan agreement with Enel Group to cover part of the investment required to build the recently inaugurated 102 MW Apiacas hydropower cluster, which is located in the state of Mato Grosso in Brazil’s Central-West Region.
Under the agreement, the first instalment of 293 million Brazilian reais (approximately US$90 million) was disbursed after the signing, with the second instalment of 80 million Brazilian reais (approximately US$25 million) to be disbursed in early 2017, subject to conditions.
“We are extremely pleased with the outcome of this transaction, which is testament to the solidity of our Brazilian business,” said Francesco Venturini, Enel’s Head of Global Renewable Energies. “Just one month after Apiacas became fully operational, we have managed to obtain BNDES funding aimed at financing industrial projects and large-scale infrastructure in the country. While we strengthen our leading position in Brazil, we also continue to attract top local and international financing partners, who appreciate the commitment that we have made in a country that is so strategically important to Enel.”
Apiacas has a total installed capacity of 102MW and is composed of three power plants: Salto Apiacás (45MW), Cabeça de Boi (30MW) and Fazenda (27MW).
Enel invested approximately US287 million in the construction of Apiacás, an investment financed through the Group’s own sources as well as the BNDES loan. The facility is supported by a 30-year power purchase agreement (PPA) for the sale of a fixed amount of power generated by the three hydro plants to a pool of distribution companies operating in Brazil’s regulated market.