LatAmto power up with cap­i­tal from China

CTG ac­quires two ma­jor hy­dropower plants in Brazil for $3.7 bil­lion

China Daily (USA) - - BUSINESS - By ZHONGNAN zhongnan@chi­

China Three Gorges Corp is to de­ploy more re­sources and man­power in both the Brazil­ian and the wider Latin Amer­i­can in­fra­struc­ture mar­kets over the next five years, as gov­ern­ments there of­fer more ac­cess to for­eign com­pa­nies to help boost their economies, its re­gional head said on Thurs­day.

CTG, the world’s big­gest hy­dropower pro­ducer by gen­er­at­ing ca­pac­ity, of­fi­cially took over the man­age­men­tand oper­a­tion rights of two Brazil­ian hy­dro­elec­tric power sta­tions ear­lier this­month. The plants, Ilha Solteira and Ju­pia, have to­tal in­stalled ca­pac­ity of 5 mil­lion kilo­watts.

Li Yin­sheng, gen­eral man­ager of CTG Brazil, said his com­pany’s op­er­a­tions would cover 10 states in Brazil in the long term, play­ing an im­por­tant role in the na­tion’s clean-en­ergy sec­tor and con­tribut­ing to the de­vel­op­ment of Brazil’s hy­dro­elec­tric in­dus­try and over­all economic growth.

CTG has so far in­vested in seven hy­dropower projects and 11 wind power projects in Brazil. The com­pany has of­fered train­ing to its Brazil­ian em­ploy­ees and se­lected a num­ber of them to go to China for ad­vanced cour­ses.

The Chi­nese com­pany suc­cess­fully bid $3.7 bil­lion at an auc­tion, gain­ing 30-year con­ces­sions to op­er­ate the Ilha Solteira and Ju­pia power plants. They are CTG’s big­gest over­seas ac­qui­si­tion so far, making the util­ity the sec­ond-largest power gen­er­a­tor in Brazil.

The con­ces­sion pe­riod was back­dated to start in Jan­uary. From 2017, 70 per­cent of the elec­tric­ity to be gen­er­ated will be sold on the reg­u­lat­ed­mar­ket and the rest on the free mar­ket. The price will be ad­justed an­nu­ally to fac­tor in in­fla­tion.

“As the largest econ­omy in Latin America, Brazil is en­dowed with abun­dant re­sources, huge mar­ket de­mand, and ma­ture elec­tric­ity and mar­ket sys­tems,” Li said.

CTG is not alone in the coun­try. State Grid In­ter­na­tional De­vel­op­ment Ltd, a wholly owned sub­sidiary of State Grid Corp of China, also plans to buy a 23 per­cent stake this month in Brazil’s big­gest power dis­trib­u­tor — CPFL En­er­gia SA — from Brazil­ian builder Ca­margo Cor­rea SA for 5.85 bil­lion re­als ($1.8 bil­lion).

“This project will cre­ate a big­ger de­mand for elec­tric­ity equip­ment and steel and push Brazil to up­date its power in­fra­struc­ture,” said Feng Yaox­i­ang, spokesman for the China Coun­cil for the Pro­mo­tion of In­ter­na­tional Trade.

money that State Grid In­ter­na­tional De­vel­op­ment Ltd will spend to buy CPFL En­er­gia SA

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.