Alcoa has announced that a shareholder agreement has been reached by investors in the Serra do Facao hydroelectric plant which formalises the creation of a company to construct the 210MW project on the Sao Marcos river in Brazil's central region.
Investors in the project are Brazil’s federal power company Furnas Centrais Electricas (49.5%), Alcoa (35%), the Pocos de Caldas Municipal Electricity Department (10%) and construction company Camargo Correa (5.5%). The consortium will be responsible for managing plant construction and its transmission system, and will implement social and environmental programmes in the surrounding communities.
Construction of the project, budgeted at R$800M (US$372M), will start early this year with installation of the construction site in the municipalities of Catalao and Davinopolis in Goias. Generation at the project is expected to start in 2010.