Furnas to sign for Peixe Angical

Federally-owned Brazilian generator Furnas expects to sign partnership agreements with Portugal's state power company EDP in the week beginning September 15 for the construction of the 450MW Peixe Angical hydro plant, local press reported. "We have almost finished studies and getting the necessary permits for the development," Furnas CEO Jose Pedro Rodrigues de Oliveira said, declining to give further information. EDP would be the project leader of the 1.3bn real (US$449mn) project, in Tocantins state, and Furnas would take a minority stake - reportedly around 40% -along with Grupo Rede. Furnas is continuing discussions with Goais state distributor Celg on payment schedules, de Oliveira added. Furnas has had financial problems in the past because the three main distributors in Brazil's center-west region - Celg, Mato Grosso state's Cemat and federal district utility CEB - have not kept up to date with power purchase payments. Negotiations with Cemat and CEB have already been completed, de Oliveira said, adding that Furnas is now operating "in equilibrium." Furnas posted 518mn reais profits in the first semester this year. Meanwhile, Celg is at loggerheads with power regulator Aneel, which did not allow the company to implement a 11% rates increase because of debts that Celg owes the federation. Celg has started legal action because the two sides dispute the size of the debt, company CEO Jose Paulo Loureiro said in a press conference Friday morning, adding that the company will discuss its debts with state power sector holding Eletrobras - Furnas' owner - in the week beginning September 15, Goais state government news service reported.