Dec 13, 2011

• Total approvals for the segment reached R$ 3.3 billion this year, an increase of 275% compared to 2010

The Board of Directors of the BNDES approved financing in four different projects for the construction of 26 wind farms, all in the state of Rio Grande do Norte, amounting to R$ 1.8 billion. The projects will have an installed capacity of 628.8 megawatts and will require total investments of R$ 2.6 billion.

With the new financing, the total funding approved this year for wind farms amounts to R$ 3.3 billion, which is the highest value ever approved by the Bank and 275% higher than last year's approvals of R$ 1.2 billion.

The diversification of the Brazilian energy grid with a renewable source, environmental benefits, and no hydrological risk are among the merits of the projects supported by the Bank. The farms will contribute to reducing greenhouse gas emissions per MW/hour of energy generated in the interconnected system. The projects also have the potential to generate carbon credits.

The farms will also have a positive impact on the dynamics of the regions since they will increase tax revenue and diversify the economic activities in the areas, which have little economic and social development.

The projects are divided as follows:

União dos Ventos – The 10 wind farms, which comprise the União dos Ventos project, will be installed in the municipalities of Pedra Grande and São Miguel, and they will have an installed capacity of 169.6 MW as well as the associated transmission system. The BNDES’ financing of R$ 557.1 million is equivalent to 73.8% of the total investments of R$ 754.6 million.

The funds are earmarked for ten special purpose companies (SPCs) created by the companies Ventos Potiguares and Serveng Energias Renováveis, which are controlled by the Soares Penido Group, to manage each one of the wind farms. The SPCs already have a 20-year contract with Cemig for the commercialization of the energy generated. The SPCs are independent of each other, which implies that the Bank will release the funds for each one of the projects separately.

São Bento Project – The BNDES will provide R$ 282 million in financing to the Galvão Group for the construction of four wind farms, called the São Bento Project, which is part of the Growth Acceleration Program (PAC). Installed in São Bento do Norte, the semi-arid Northeast region, the farms will have an installed capacity of 94 MW and will be directly connected to the Brazilian Interconnected System.

The Bank’s financing is equivalent to 70.27% of the total investments of R$ 401.4 million. The funds will be allocated to civil works, to the purchase of domestic equipment, especially wind turbines and the substation, and to the construction of the associated transmission system.

The wind farms are controlled by the following special purpose companies, especially created for the management of projects: Boa Vista, Farol, São Bento do Norte, and Olho D’água.

The SPCs will make environmental investments - beyond the requirements of environmental licensing - in the amount of R$ 1.4 million, entirely financed by the BNDES. These investments are part of the Bank's policy for sustainable development in the surrounding areas of the projects.

Asa Branca – The Asa Branca Wind Complex, from Brazil's Contour Global, will install five farms with the Bank support of R$ 453.1 million and an installed capacity of 160 MW. The farms will be built in the municipalities of João Câmara, Jandaíra, and Parazinho, which comprise the semi-arid region of Rio Grande do Norte. Contour will invest R$ 600 million throughout the project, which will create 800 direct and indirect jobs.

DESA Morro dos Ventos – The Bank approved financing of R$ 555 million to DESA Eólicas S/A group for the construction of seven wind farms. The farms will have an installed capacity of 205.2MW. The total investment will be R$ 818 million, which will enable the creation of 1,190 direct and indirect jobs during the works. The projects will be installed in the municipalities of João Câmara and Parazinho.