Brazilian Engineering Company Camargo Correa to Participate in $9.8 Billion Madeira Hydroelectric Complex

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Researched by Industrial Info Resources (Sugar Land, Texas). Camargo Correa, the Brazilian engineering company, and other energy and power companies are planning to bid for the 6,450 MW Madeira Hydroelectric Complex located in the state of Rondonia, Brazil.

This $9.8 billion complex is to be made up of the 3,150 MW San Antonio and the 3,300 MW Jirau projects located in the Madeira River, western Amazon region. The construction of this complex is considered essential by the Brazilian government in order to help the country meet power demand by 2011. Both projects are the basis for the Brazil-Bolivia-Peru hub of the Initiative for the Integration of the South American Infrastructure (IIRSA) and also part of PAC, Brazil’s growth acceleration program.

Camargo Correa is in talks with Amel Amazonia Madeira Energetica to participate in this special purpose company designed to bid for the Madeira Hydroelectric Complex. The Funcef pension fund for employees of Brazilian federal savings bank, Caixa Economica Federal, and large scale power companies are also studying the possibility of participating in Amel. The official Brazilian development bank, BNDES, will grant loans to Amel’s companies to help pay 75% of the investments; the remaining 25% is to be paid by each company through individual financing agreements.

Brazilian engineering company Odebrecht and the federal power company Furnas performed the EIS for the Jirau and San Antonio projects in which they invested $25 million. However, Brazil’s federal environmental protection agency, Ibama, states that studies are incomplete and will ask for complementary studies.

Even though the mine and energy ministry is keen for the licensing process to finish and Brazil’s government officials are trying to speed up the bidding process for the San Antonio project, Ibama’s decision will prevent bids to take place before July 2007.

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