En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Brazil's Cemig sells hydroelectric dam operating licenses for $3.8 bln to CSPI, Engie and Enel

 

By Luciano Costa

SAO PAULO
Petroleumworld 09 28 2017

Brazil 's government on Wednesday sold licenses to operate four hydroelectric dams for a total of 12.12 billion reais ($3.80 billion) in an auction won by Chinese and Europe an bidders.

The amount raised is 10.1 percent above the 11 billion reais minimum asking price the government had set.

China's State Power Investment Corp will pay 7.18 billion reais to operate the São Simão hydropower plant, the biggest of the four assets auctioned.

In a statement, the company said it will continue looking for acquisition targets in Brazil , adding it favors investments in hydroelectric and wind power projects.

France 's Engie SA acquired the licenses to operate the Jaguara and Miranda dams for a combined sum of 3.53 billion reais.

Gustavo Labanca, a senior Engie executive, said the company may sell debentures or commercial paper in Brazil to fund payment of the licenses.

Italy 's Enel Spa won the bid for Volta Grande dam for 1.41 billion reais.

Brazil 's government was pleased with the result of the auction, which was in line with expectations, Planning Minister Dyogo Oliveira said on Twitter.

Depending on the dam, the bidders paid between 6.5 percent and around 22.5 percent above the government's minimum price.

The auction results signal strong investor appetite in the privatization program of President Michel Temer, who is trying to raise money to cut Brazil 's budget deficit.

Companhia Energética de Minas Gerais previously operated all four dams. Shares of Cemig, as the company is known, fell 1.6 percent to 7.92 reais in early afternoon trading.

$1 = 3.1958 reais



Story by Luciano Costa; Writing by Ana Mano; Editing by W Simon from Reuters.

reuters.com 09 27 2017

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

Nov 13-14 ;
Mexico City, Mexico

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.