The deal, for a purchase price of US$288M but is subject to regulatory approval, was made through BAM’s wholly-owned subsidiary Brookfield Power. The acquisition increases BAM’s hydropower portfolio by 53% to 41MW.

The hydropower plant is on the river Itiquira in the state of Mato Grosso and consists of two plants wit a total of four units. The annual generated output from Itiquira is approximately 940GWh.

All of the station’s output is sold under a long-term contract that runs to 2014. With the purchase of the plant the company now has three hydropower stations in the state with a total capacity of almost 200MW.

Brookfield hopes to obtain approvals for the acquisition to achieve financial closure this quarter.