Odebrecht is assessing a second round of offers from four shortlisted bidders for the 406 MW Chaglla hydroelectric power plant in Peru, LatinFinance understands.
The Brazilian builder could could earn roughly $1.1bn for the asset, said a source close to the sale. An agreement will likely be signed in the first half of the year, he added.
Sources involved in the sale did not identify the shortlisted bidders, but a banker away from the deal said interest had come from French electric utility Engie, Canadian investor Brookfield, US energy investor ContourGlobal and Italian electricity and gas company Enel.
Odebrecht’s Peruvian subsidiary signed a 15-year power purchase agreement (PPA) with the state-owned electricity company Electroperu, which took effect in October last year.
“Buyers are more likely to bet on this Odebrecht asset as it is up and running with a PPA,” the first source said.
Odebrecht secured $774m in project financing for Chaglla from commercial and multilateral lenders in July 2013.
“The financing is also already in place, which eases buyers’ concerns,” the source added.
President Pedro Pablo Kuczynski last month told Odebrecht to leave Peru after the Brazilian firm admitted to paying $29m in bribes in the country between 2005 and 2014.