Brazil’s MME to Bid Madeira’s 3,150 MW San Antonio Hydroelectric Project in October 2007

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Researched by Industrial Info Resources (Sugar Land, Texas) -- According to Brazil’s mine and energy ministry, the auction for the construction and operation of the 3,150 MW San Antonio project located on the Madeira River, in the western Amazon region, is scheduled to be carried out on October 30, 2007.

The San Antonio project together with the 3,300 MW Jirau project are both part of the $9.8 billion 6,450 MW Madeira Hydroelectric Complex located in the state of Rondonia, Brazil. 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. 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. The Brazilian engineering company, 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. For details, see related May 3, 2007 news article - Brazilian Engineering Company Camargo Correa to Participate in $9.8 Billion Madeira Hydroelectric Complex

Amel will finish tender rules for the San Antonio project, which will be disclosed by the end of this month. The project’s public hearings are to end on August 17, 2007. Federal power companies will have a minority participation in the project, so if a foreign company or consortium wins the San Antonio auction, a special purpose company must be formed. It has been agreed that construction firms can hold up to 20% in consortiums planning to bid for this project. If full environmental licenses are approved by September of this year, construction is to be finished by 2012. Brazil’s government is planning to auction transmission lines for the 3,150 MW San Antonio in 2008.

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