MPX and Energias Do Brasil Sign MoU to Partner in the Development of Porto Do Pecem II TPP
RIO DE JANEIRO, Brazil, Aug. 21 /PRNewswire-FirstCall/ — MPX Energia S.A. (Bovespa: MPXE3) informs that it has signed a Memorandum of Understanding (MoU) with Energias do Brasil S.A. for the joint development of Porto do Pecem II TPP (Pecem II). The MoU foresees the acquisition by Energias do Brasil of a 50% stake in the project. Pecem II will have an installed capacity of 360 MW and will be located in Sao Goncalo do Amarante, State of Ceara.
The first phase of UTE Porto do Pecem TPP (Pecem I), a 720MW coal-fired plant project, is a 50/50 partnership between MPX and Energias do Brasil. Pecem I sold 615 average MW in the A-5 energy auction, held in October 2007 and its construction is already under way.
MPX Energia S.A. also informs that the Ceara State Environmental Superintendency (Superintendencia Estadual do Meio Ambiente do Estado do Ceara – SEMACE), issued the Preliminary License for Pecem II (360 MW) in July 2008. The license enables the participation of the unit in the next new energy auction, A-5, expected to occur in September 2008. Citibank has been hired to act as financial advisor for the Pecem II in the auction.
Porto do Pecem II TPP foresees the installation of an additional 360 MW coal-fired generation unit and should benefit from capex and opex synergies with Pecem I. MPX will eventually disclose the estimated value of these synergies, as well as the terms and conditions of the partnership, in case the project is successful in the A-5 energy auction, to be held in Sept 2008, and after the signing of the definite partnership agreement.
MPX Energia S.A.
CONTACT: Flavia Heller, IR Manager, + 55 21 2555-4244, or Daniel HaddadIR Analyst, +55 21 2555-4015, both of MPX Energia S.A., email@example.com
Web site: http://www.mpx.com.br/ri