BNDES Writes Big Hydro Check

BNDES is providing BRL22.5bn ($10.8bn) in 30-year funds for the 11,233 megawatt Monte hydroelectric plant, the development bank says. It is directly funding BRL13.5bn to the Norte Energia special purpose company, with a portion of the funds also routed through Caixa Economica Federal (BRL7bn), and BTG Pactual (BRL2bn). The TJLP-based interest rate is not disclosed. The disbursement of funds is expected to follow the construction schedule, with the first of the plant’s 24 turbines due to come online in 2015 and the last by 2019. BNDES will also put some BRL3.2bn toward social and environmental projects, it says. “This is the largest amount ever approved by the bank for socio-environmental initiatives, equivalent to 11.2% of the total resources invested in the plant,” BNDES says. The project’s total investment is expected at BRL28.9bn.