Concession of a hydroelectric plant

Client: Consorcio Energetico Foz do Chapeco.

Financial Advisor for the concession to build and operate a hydroelectric plant through a new company. This project will imply the increase of the total capacity installed in the region with 855 MW. This project is promoted by the Agencia Nacional de Energía Eletrica (ANEEL) and the project is allocated in the area of the Uruguay River, between the regions of Santa Catarina and Rio Grande do Sul.

ITAC advises in the negotiations for the development of a power generation facility, including project structuring, elaboration of project company documentation, performing the due diligence process, negotiating the administrative requirements, structuring the project finance, and establishing a new company to build and operate the facility through a concession. The new company (Consorcio Energético Foz do Chapeco) will distribute the shares in CVRD (40%), Serra da Mesa Energia S.A. (40%), Companhia Estado Electrica (20%). Through this operational strategy, CVRD assure the electricity generation for the supply.

Services Provided:
Study of the different financing alternatives for the project.
Negotiation of the terms and conditions of concession, including the necessary legal framework changes for the implementation of the private initiative.
Preparation of the bidding documentation required for the concession.
Preparation of the Road Show.
Financial modelling.
Negotiation of the terms and conditions of the concession.
Drafting the statutory instrument for the establishment of the terms that will govern the operation and the tariffs modalities.
Negotiation off-take and risks analysis.