En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Brazil lawmakers lobbying for Cemig hydropower dams' license renewal -sources



Petroleumworld 04 20 2017

Senators and lower house lawmakers representing Brazil's state of Minas Gerais have joined forces to help Cia Energética de Minas Gerais SA lobby for the renewal of four hydropower dams whose licensing rights expired recently, two people with direct knowledge of the situation said on Wednesday.

Former presidential runner-up Aécio Neves and Antonio Anastasia, both senators representing Minas, will lead efforts to renegotiate renewal of the São Simão, Miranda, Jaguara and Volta Grande dam licenses for Cemig with the National Treasury and other federal bodies, said the people, who asked for anonymity to discuss the matter.

Cemig, controlled by the Minas Gerais state, needs to regain control of the dams to rein in rapid debt growth. Debt tripled since 2012, when a federal government decision to renegotiate power contracts dented the value of electricity assets and hampered project returns.

The utility has incurred heavy losses and cut capital spending for this year to cope with loss of the dams. Minas Governor Fernando Pimentel and archrivals Neves and Anastasia will work together to facilitate renewal of the dam licenses with the federal government for 20 years, the people said.

One alternative would involve using two Cemig subsidiaries to pay a 3 billion reais ($966 million) tranche of the licensing fee, one of the people said. The rest of the money would come from Cemig and could even involve offering a stake in the dams to the federal government, the same person added.

Press representatives for Neves and Anastasia confirmed their engagement on the renewal plan, without elaborating. Cemig did not have an immediate comment.

Preferred shares, Cemig's most widely traded class of stock, gained 0.2 percent on Tuesday. Expectations of a renewal of the dams and faster asset sales have bolstered the stock 22 percent this year. ($1 = 3.1071 Brazilian reais)

Note by Guillermo Parra-Bernal and Luciano Costa;Editing by David Gregorio from Reuters.

reuters.com 04 19 2017

We invite all our readers to share with us
their views and comments about this article

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels




Offshore Technology Conference

May 1-4, NRG Park
Houston, Texas, USA




Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.