DF signed two contracts in Brazil amounting to 800 M € for the construction of two combined cycle

DF has signed two contracts in Brazil with Bolognesi Energia to build the gas fired power plants of Rio Grande and Novo Tempo. The plants won the A-5 auction in 2014 held by the Agencia Nacional de Energía Eléctrica or National Electrical Energy Agency (ANEEL) and will be jointly built by Duro Felguera S.A., the subsidiary Duro Felguera do Brasil and General Electric International Inc.

The turnkey contract includes the engineering, procurement, construction, commissioning and performance testing for the gas fired power plants. The capacity of each plant will be approximately 1,500 MW and the latest General Electric Class H gas turbines will be used.

Over 20,000 jobs will be created in the construction of the plants, while investment will be c. 6,500 million Brazilian Reales. The amount corresponding to DF for each project is c. 400 million Euros, which means a total contract price of c. 800 million Euros.

Each plant will consume 5.5 million m3 of gas per day, provided by the Liquefied Natural Gas (LNG) regasification terminals with a capacity of 14 million m3 per day, also to be built by Bolognesi Energia. The supply of LNG will take place under a 25-year contract with a major international producer. The long-term debt for the projects will be with US Exim Bank and the BNDES. Itaú BBA and the Banco de Brasil have been contracted as financial advisors and project structuring agents.

With the signing of these two contracts, DF resumes its activity in Brazil in the field of energy. Two years ago the company finished the Parnaiba project in the country, consisting of five open cycle generation groups making up a total of 850 MW, and which was built in the state of Maranhao.

The company is currently executing five power plants in Argentina, Peru, Venezuela, the United Kingdom and Algeria, which surpass 4,000 MW in power, to which this new project can now be added together with the Aconcagua project, a cogeneration plant which will be built in Chile for ENAP. The contract, amounting to 106 million Euros, was signed this same month.