Dec 13, 2012

The board of directors at the BNDES has approved financing in the amount of R$ 736. 8 million for the construction of the Santo Antônio do Jarí hydroelectric power plant, between the municipalities of Almeirim, in the state of Pará, and Laranjal do Jarí, in the state of Amapá.

The plant will have an installed capacity of 373.4 MW, with start-up scheduled for 2014. The project includes its own transmission line of approximately 20 kilometers, which will be part of the Tucuruí-Macapá-Manaus interconnection to the National Interconnected System.

The project, which is part of the Growth Acceleration Program (PAC), is a priority for Brazil and will increase the supply of electric power in the north of the country. Some 1,800 direct and 2,000 indirect jobs will be created during the construction work, with most manpower coming from nearby areas.

Financing from the BNDES will be for the Specific Purpose Company ECE Participações S/A, a wholly-owned subsidiary of Jarí Power Plant, which, in turn, is a subsidiary of EDP – Energias do Brasil. The Bank will finance 67.1% of the total planned R$ 1 billion investment, and this includes support for social projects in the surrounding areas of the plant; projects extend beyond the obligations foreseen in environmental licensing, and aim at improving the social conditions in the project area.

Such investments entail the construction of adequate infrastructure (sewage system, treated water supply system and public lighting) as well as leisure facilities in Vila São Francisco do Iratapuru, near the hydroelectric power plant.

The SPC will also earmark resources to improve the extraction of Brazil nuts by purchasing ovens, lamps and water purifiers, which will improve the standards of living and the working conditions for Brazil’s nut harvesters. Currently, they remain isolated in the forest for periods of four month in spots where power has not yet been made available.

The plant will be of a small stream type. The reservoir will be in a relatively small area, and most part is flooded when the riverbanks burst. The dam will be built above the waterfalls, maintaining the flow for the natural cascade.