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BNDES invests in improving electricity services for 14 million people

09/02/2020

 The Brazilian Development Bank (BNDES) will support the 2020-2021 Investment Plan for the electricity distributors of Neoenergia to improve the services provided to 14.1 million clients in the states of Bahia, Pernambuco, Rio Grande do Norte, Mato Grosso do Sul and São Paulo. By the end of the project, we expect that 750,000 new homes will be served by one of the concessionary distribution companies Coelba, Celpe, Cosern and Elektro. The investments supported by BNDES will also create 2,300 new direct jobs in these five states, equivalent to 11% of the workforce of the four distribution companies. 

The Neoenergia group will receive R$ 3.39 billion in funding from BNDES, equivalent to 59% of the total investment of the project (R$ 5.75 billion). The 2020-2021 Investment Plan is in accordance with the National Energy Plan 2030 proposed by the Brazilian government, which foresees an increase of 90,000megawatts (MW) in electricity supply and an increase of 13,000kilometers in connection networks. 

The investment plans for the 2020-2021 biennium of Coelba, Celpe, Cosern and Elektro involve energy operation and distribution activities, electrical connections for new consumers, acquisition of service, computer and automation equipment for the basic network. The project seeks to improve the compliance and quality of the service provided, in addition to avoiding non-technical losses. The four concessionaires will invest in the renovation of energy substations and high-voltage transmission lines, as well as in the provision of telecommunications infrastructure. 

Proponents ─ Companhia de Eletricidade do Estado da Bahia (Coelba), Companhia Energética de Pernambuco (Celpe), Companhia Energética do Rio Grande do Norte (Cosern) and Elektro Redes S.A. (Elektro) are joint stock companies whose objective is to provide public energy distribution services. All of them are under the control of Neoenergia S.A., a company that generates, transmits, distributes and sells electricity. The holding company belongs to the Spanish group Iberdrola, which has a history of direct and indirect operations contracted with BNDES.

Coelba serves 15 million people in 415 of the 417 municipalities in Bahia, in addition to Delmiro Gouveia (state of Alagoas)L and Dianápolis (state of Tocantins). Celpe, in turn, distributes energy to around 9.5 million Brazilians in 184 municipalities in Pernambuco, in the district of Fernando de Noronha and in the municipality of Pedra do Fogo (state of Paraíba). Cosern is the only concessionaire to serve 3.5 million people distributed into 167 municipalities in the state of Rio Grande do Norte. Lastly, Elektro distributes electricity to 223 municipalities in São Paulo and five others in the state of Mato Grosso do Sul, serving a population of more than six million people. 

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. Its actions are focused on socioenvironmental and economic impact in Brazil. The BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In situations of crisis, the Bank acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.

 

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