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Apr | 2017 | N° 38
China’s Zhejiang Electric Power Construction negotiating dam purchase in Brazil04/10/2017 | 12h17
The Chinese Zhejiang Electric Power Construction Co Ltd (ZEPC) is negotiating the purchase of a stake in the Belo Monte hydroelectric complex on the Xingu River in Pará state, Reuters financial agency reports, citing sources linked to the process.
The dam, with production capacity of 11,233 megawatts, is located on one of the main tributaries of the Amazon River. It is owned by the Norte Energia consortium which includes Eletrobras, Neoenergia, Cemig (Companhia Energética de Minas Gerais), and Light Serviços de Electricidade, the Vale mining group and the Metros and Funcef pension funds.
The CEO of Eletrobras, a group previously known as Centrais Eléctricas Brasileiras, said that some consortium shareholders (which he did not identify) aimed to sell their respective stakes in the business.
The Norte Energia consortium has already invested 31.6 billion reais (US$10.1 billion) in the hydroelectric project, though delays, extra costs and licensing problems have resulted in a lack of profits, with some partners having indicated their discontent.