Furnas, Energias do Brasil study hydro projects worth US$1.2bn

Brazilian federal power company Furnas and power company Energias do Brasil are studying four generation projects with combined investment of 3bn reais (US$1.2bn) and total installed capacity of 1,000MW, Canal Energia news service reported. The projects include the 600MW Ipueiras hydroelectric project in Tocantins state and the 106MW Mirador hydro project in Goiás state. Energias do Brasil will always be the controlling partner in the projects since state-controlled companies cannot have more than a 49% stake in joint ventures with private companies. Furnas and Energias do Brasil, the Brazilian holding company for assets controlled by Portugal's state power company EDP, are already working together in the 452MW, 1.5bn-real Peixe Angical project which is being built on the Tocantins river in the northern state of the same name. The two companies announced the second stage diversion of the river to carry out construction of the dam. Energias do Brasil has a 60% stake in Peixe Angical while Furnas has 40% stake. The plant is expected to start commercial operations in May 2006 and has already been licensed by federal environmental protection agency Ibama to cut down the trees in a 294 sq. km. area that will be flooded to form the reservoir. Flooding is scheduled to start in January 2006.