CTG Brasil signed on Tuesday (05/01), at a ceremony with the presence of the interim Minister of Mines and Energy, Mr. Luiz Eduardo Barata, the Chairman of the China Three Gorges Corporation, Mr. Lu Chun and the Chinese Ambassador Mr. Li Jinzhang, the concession agreement of the hydropower plants (HPPs) Jupiá and Ilha Solteira for the next 30 years. CTG Brasil will be the first foreign company alone to take over the management of a hydroelectric plant in Brazil.
During the ceremony, Mr. Barata said that the country values the participation of foreign investors in infrastructure projects, such as the energy sector. “Despite the great challenges we are facing at this moment, Brazil, in particular the energy sector, remains one of the main destinations for international investment,” he said.
In his speech, Mr. Lu Chun, said that large hydro are part of China Three Gorges DNA and, although the company is only two years in the country, it is already present in ten Brazilian states. “We want to expand our presence in the country by investing in clean energy,” he said.
Mr. Lu Chun also recognized the importance of the two plants to the Brazilian generation park. “CTG will comply with all requirements of the concession agreement. We are a responsible company “, he added.
CTG Brasil won the two plants concession in the auction held on November 25, 2015 and the total concession fee is R$13.8Billion. The company has paid 65% of it and the remaining 35% will be paid in 180 days.
Jupiá and Ilha Solteira has an installed capacity of 4,995 MW. With this acquisition, CTG Brasil becomes the second largest generator of energy with private capital in the country.