The Procuring Authority signed a PPP contract with the Project Company for this hydropower project in the early 2000s. However, due to challenges faced by the Project Company in securing the permits needed for construction, the project did not reach financial close until five years later. The plant has a generating capacity of above 70 MW. As per the PPP contract, the Project Company built the plant with the right to operate it until the expiry of the PPP contract, with a provision to extend the operational timeframe, before transferring the asset to the government.
This project was one of the early energy generation PPPs awarded in Brazil. The construction was delayed due to difficulties in obtaining environmental permits. The Procuring Authority consequently allowed, through a renegotiation of the PPP contract, additional time for the Project Company to complete construction. The lessons learned from this early hydropower PPP project and other projects awarded at the same time have been incorporated in the later Brazilian energy PPP contracts.