Business / Companies

China Three Gorges wins bid to operate 2 Brazilian hydropower plants

(Xinhua) Updated: 2015-11-26 13:14

BRASILIA - China Three Gorges (CTG) on Wednesday won the rights to operate two major hydroelectric plants in Brazil, the Brazilian Electricity Regulatory Agency (Aneel) said.

The Brazilian government auctioned on Wednesday 29 hydroelectric power plants whose concession contracts are about to expire, and the Chinese company managed to win the rights to what was regarded as the best lot.

The CTG would be able to operate Ilha Solteira and Jupia plants, the two largest of 29 plants on offer, and inject 13.8 billion reais ($3.7 billion) into the government's coffers.

In all, Brazil raised 17 billion reais ($4.5 billion) in bidding on the concessions to the hydroelectric plants that together represent 296,000 megawatts (MW) of installed capacity, the agency said.

The bidding on the 30-year concessions took place at the Sao Paulo Stock Exchange.

The CTG is expected to pay 65 percent of its investment before the end of the year, a big boon to Brazilian government's efforts to lower the public deficit by year end.

The two plants, located between the states of Sao Paulo and Mato Grosso do Sul, were being operated by the Sao Paulo Electric Company.

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