Summary of Proposed Investment
Project Number
7906
Company Name
Usina Hidrelétrica Guilman Amorim S/A.
Date SPI Disclosed
Feb 19, 1997
Country
Brazil
Industry
Infrastructure
Status
Completed
Sector
Large Hydro - Renewable Energy Generation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jun 23, 1997
Signed : Mar 30, 1998
Invested : Aug 13, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-Guilman-Amorim Hydroelectric Project |
| Region | Latin America |
| Sector |
Projected Board DateMarch 25, 1997
Company NameUsina Hidroeletrica Guilman-Amorim S.A.
Technical Partner and/or Major Shareholders
The Company’s shareholders and Sponsors are Belgo-Mineira for 51% of the share capital and Samarco for 49%. Belgo-Mineira’s core business activities are in the steel manufacturing sector while Samarco is a mining company
Project Cost Including proposed IFC investment
US$146 million, including a US$20 million IFC ‘A’ loan, US$86 million IFC ‘B’ loan and US$10 million IFC ‘C’ loan (quasi-equity).
Location of project and Description of site
Plant located on the Piracicaba river, in the Municipalities of Nova Era (the reservoir) and Antonio Dias (the Power House), Minas Gerais.
Description of Company and Purpose of Project
This project involves a build, own and operate a run-of-the-river 140 MW hydroelectric plant on the Piracicaba river, in the State of Minas Gerais. The plant will supply energy to Belgo-Mineira Monlevade steel plant and to Samarco’s Germano-Aalegria mine, through the State utility company, CEMIG. The Brazilian Ministry of Mines and Energy predicts an electricity shortage as early as 1997 in the Interconnected System of Southern Brazil. Given the limited resources of the Public Sector and in accordance to the World Bank recommendations, the Brazilian Government issued a new regulatory framework to allow the Private Sector to generate electricity. In this context, the Sponsors, who are both large electricity consumers, have decided to develop their own power generation capacity with the objective to reduce their cost of electricity and to increase the reliability of power supply. This is the first private project in the power sector to be implemented in Brazil
Environmental Category and Issues
This is a category Special B project under IFC’s environmental review procedures because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. Environmental issues associated with this project include: land use modification, erosion control and effects on aquatic resources and water users. The environmental impacts of this project are expected to be less than significant, and in compliance with local environmental requirements and consistent with applicable World Bank environmental policies.
The is from the Public Information Center.
| Date SPI sent to PIC | February 18, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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