French group EDF agreed to buy a 51 percent stake in Brazil’s 400 MW Sinop hydroelectric project as it continues to increase its footprint in the country.
The deal with local developer Alupar was confirmed to Brazil‘s antitrust regulator Cade and published in federal gazette Diário Oficial da União on Thursday.
No financial details were given but it is understood the value of the sale was reduced by EDF’s pledge to contribute almost all of Alupar’s original investment commitment.
Located on the Teles Pires River, in the western state of Mato Grosso, Sinop is due to begin operating in 2018.
Other stakeholders are Chesf (24.5 percent) and Eletronorte (24.5 percent), both subsidiaries of state-run power group Eletrobras.
Thursday’s announcement follows EDF’s April purchase of an additional 10 percent stake in the Norte Fluminense gas-fired fossil-fired plant from state-run energy major Petrobras.
The Paris-based firm now holds a 100 percent stake in the 869 MW combined-cycle facility in the north of Rio de Janeiro-state.