As per the agreed terms, Mitsui will take a 20% stake in the project being constructed on the Madeira River in the State of Rondônia, for BRL5.7bn (€ 2.2bn).
The hydro power facility consisting of 50 turbines is expected to become completely operational in 2015.
About 73% of the total power generated at the hydro power plant will be sold to a group of distribution companies, under 30-year power purchase agreements. The remaining amount of power will be sold to the existing shareholders.
Commenting on the transaction, GDF SUEZ chairman and chief executive officer Gérard Mestrallet said that the Jirau hydro power plant is the company’s major project in Brazil and strengthens the company’s commitment in meeting the increasing energy demand in the country.
"It is part of GDF SUEZ strategy to partner with strong industrial companies to facilitate the completion of major developments. The commissioning of Jirau will demonstrate our ability to deliver important energy infrastructure in key markets," added Mestrallet.
A loan agreement on a project finance basis has been executed with Brazilian Development Bank and a group of commercial banks, while both the operational license and environmental license have already been granted.
The transaction will be completed during the second half of 2013, following the approvals from ANEEL – Electricity Energy Regulatory Agency and CADE – Brazilian anti-trust entity and lenders.
