Suez sells power worth €3.3bn on Brazil power auction

17 October 2007 – Suez Energy International has sold 256 MW average of power from its participation in the Estreito power plant at the power auctions held in Brazil on 16th October 2007.

The Estreito 1087 MW hydro-electric power project is currently being constructed by SUEZ Energy International, leader of the consortium with 40.07 per cent, in partnership with Companhia Vale do Rio Doce (30 per cent), Alcoa (25.49 per cent) and Camargo Correa (4.4 per cent).

The price obtained by Suez at the auction was 126.57 BRL per MWh for 30-year indexed Power Purchase Agreements.

Electricity from hydro and thermal projects was offered to distributors at the auction in contracts starting from 2012. The partners of Suez in this project are auto-producers and will consume their output on their industrial sites in Brazil.

The Estreito concession was acquired by Suez and its partners in 2002. The plant is located on the Tocantins river, between the states of Tocantins and Maranhão in Brazil, downstream from the São Salvador 243 MW hydro project which Suez is also constructing; and Cana Brava, a 450 MW hydro plant owned by Tractebel Energia, Suez’s subsidiary in Brazil.

Mauricio Bähr, CEO of Suez Energy Brazil commented: “We began construction of Estreito in January 2007, and this Power Purchase Agreement will enable us to finalise the financial agreement with BNDES, completing the development of the most important hydro project under construction in Brazil today”.

Dirk Beeuwsaert, CEO of Suez Energy International, added: “The auctions in Brazil help address the growing demand for electricity in the country. Our successful participation and our decision to start constructing this new hydro plant demonstrates our continuing interest in the Brazilian market.

“These auctions have enabled us to get long term contracts which provide a secured global cash flow and will become an interesting contributor to Tractebel Energia’s business.”