business plan for 2004 - EDP

2003 - Annual Report - EDP
>> 1.3.3 Business of the EDP Group in Brazil
Company Restructuring
During December 2003 the EDP Group concluded a new
stage of corporate restructuring, involving the transfer to
EDP Brasil, S.A., of the direct control of IVEN, S.A., the
company that controls Escelsa – Espírito Santo Centrais
Elétricas, S.A., and Enersul – Empresa Energética de Mato
Grosso do Sul, S.A..
During the process Calibre Participações S.A., 135
Participações S.A., EDP 2000 Participações Ltda., and
EDP Investimentos Ltda., were also liquidated. These
were vehicles used at the time of acquisition of the
investments in IVEN. The liquidation involved their
transfer to EDP Brazil, increasing its share capital to the
benefit of the company’s shareholders, the aim being to
simplify the corporate structure and to eliminate tax
inefficiencies.
As a result of this process, EDP Brazil now holds 23.98%
of the total share capital and 69.55% of the voting capital
of IVEN.
Also in December, the EDP Group promoted the
incorporation of Enerpro Serviços de Produção e
Engenharia, S.A., by Energest, S.A., which now handles
development and implementation of energy production
projects and the provision of engineering and operation
and maintenance services for production units in
Brazil.
Generation
Maximum Power and Net Generation
EDP Group in Brazil
• Lajeado
2003 2002
Lajeado 903 903
Peixe Angical (1) 452 452
Fafen (Cogeneration) 54 -
Maximum power as at 31 Dec (MW) 1 409 1 355
Lajeado 4 457 2 589
Peixe Angical (1) - -
Fafen (Cogeneration) 167 201
Net Generation (GWh) 4 624 2 790
(1) Under construction
The Lajeado hydroelectric power station, built by
Investco, a company in which EDP has a 27.65% stake,
is located on the river Tocantins, with an installed
capacity of 902.5 MW, which occurred as planned and
generated 4457 GWh of electricity during 2003, a year
marked by below-average flows during the wet season.
Within the scope of the environment, the mitigation of
socio-economic impacts consolidated the implementation
of the Rural Development Plan through
agreements entered into by the company, the
authorities and the local population, leading to the
emancipation of the affected families and to the transfer
of public services, health and communications in
particular, to the competent governmental and
municipal entities. In the biotic area, work went ahead
on reflorestation and on cleaning the reservoir, while
limnology and ichthyofauna studies were carried out in
respect of the working of the power station.
• Fafen
The Fafen thermoelectric power station, located at the
Camaçari Petrochemical complex in the state of Bahia,
saw the start to the construction of its second stage
during March 2003, consisting of a 26.7 MW gas turbine
and a 53 MW steam turbine.
EDP is developing the undertaking in partnership with
Petrobrás in the proportion of 80% to 20%. In its final
form, set to be concluded in February 2004, it will have
the capacity to generate a net 133 MW of electricity and
42 tonnes of steam per hour, burning natural gas.
During 2003 the plant generated a total of 167 GWh and
352,603 tonnes of steam.
• Peixe Angical
Work on the Peixe Angical hydroelectric plant, with an
installed capacity of 452 MW, which had been
suspended in 2002 as a result of difficulties in securing
financing under acceptable conditions, restarted in
October 2003 following agreements entered into by
EDP with the Eletrobrás Group and Banco Nacional de
Desenvolvimento Económico e Social (BNDES).
Under these agreement, Furnas Centrais Elétricas S.A.,
– an Eletrobrás subsidiary – agreed to acquire a 40%
stake in the project, while BNDES put up the finance
for about 50% the project (670 million reals, out of a
total budget of 1391
million reals), allowing
a substantial reduction
in the financial effort
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