CTG Brasil takes over the operation of the Ilha Solteira and Jupiá hydropower plants

CTG Brasil today took over the operation of the Ilha Solteira and Jupiá hydropower plants, both located on Paraná River, on the border between the States of Mato Grosso do Sul and São Paulo. The company acquired both concessions in an auction organized by the Brazilian government in November 2015, with an award payment of R$ 13.8 Bn.

The acquisition of the Ilha Solteira and Jupiá hydropower plants, which have a combined installed capacity of 5 GW, makes CTG Brasil the second largest private energy generation company in Brazil, with an installed capacity of 6 GW. The company entered the Brazilian market in 2013 with the aim of combining Brazil’s and China’s expertise to generate green energy solutions.

On June 30, Rio Paraná, a 100% subsidiary of CTG Brasil, which owns the Ilha Solteira and Jupiá hydropower plants, paid the remaining 35% of the concession’s value. The first tranche of R$ 9 Bn was paid in January this year. The award payment was made through a combination of equity and debt.

CTG Brasil’s teams in Ilha Solteira and Jupiá will be mostly formed by professionals who have worked in these plants, which were previously operated by Companhia Energética de São Paulo (CESP). CTG Brasil has made its best efforts to hire the employees of both hydropower plants, presenting job offers to everyone. So far, 84% of the plants employees have accepted to join CTG Brasil’s team.

During the transition period, CTG Brasil identified areas requiring investments in operational improvements and outlined social and environmental programs involving the surrounding communities. In addition to complying with all the applicable laws and regulations, the company intends to build a close relationship with the communities around the plants.

“We are very happy that we have successfully completed the six-month transition period and are proud to be assuming the operations of two landmark projects in the Brazilian energy generation market,” commented Li Yinsheng, CEO of CTG Brasil. “The talent of our teams will help CTG Brasil become a relevant player in Brazil’s energy market, generating green energy solutions for the future”.

Photo: courtesy of China Three Gorges Brasil Energia Ltda.