The Inter-American Development Bank (IADB) has announced the approval of a loan of up to US$75mn to support the construction of a 880MW hydroelectric power plant in the Canoas River in the State of Santa Catarina, Brazil.
The Campos Novos Hydroelectric Power Project – that was given a 35-year concession contract for the construction, operation and maintenance of the project – is a part of an electricity generation plan for the Brazilian interconnected system for the period 2001-10. Construction will be carried out under a turnkey engineering construction contract by a consortium of contractors led by Construes e Comrcio Camargo Correa.
The sponsors of the project are CPFL Gerao de Energia, Companhia Brasileira de Alumnio, Companhia Nquel Tocantins, Companhia Estadual de Energia Eltrica and Centrais Eltricas de Santa Catarina.
The plant will consist of three 293MW turbines, a rock filled dam with a crest length of about 592m and a 11km transmission line to be connected to the existing 230kV Campos Novos substation. The project includes a US$1mn Social Fund for Development of Local Communities in the areas influenced by the project.
The concession allows production and sale of up to 3,310,404MW hour of energy per year. Production will be totally purchased by Enercan’s shareholders and their subsidiaries under power purchase agreements.
Total project costs are estimated at US$523.9m, and its completion is expected by October 2007.