SA0 PAULO (Dow Jones)-Brazilian pension funds Funcef and Petros
are jointly evaluating the acquisition of a 9.99% stake in the
Jirau power dam project, according to a report Wednesday in local
business daily Valor Economico.
The report cited Funcef President Guilherme Lacerda.
Funcef is the pension fund for workers of Brazil's state-run
bank Caixa Economica Federal, while Petros is the pension fund for
workers at energy company Petroleo Brasileiro SA, or Petrobras
(PBR).
Both pension funds are evaluating the acquisition of the stake
held by local industrial conglomerate Camargo Correa. Lacerda did
not indicate a price for the stake, however, according to a source
consulted by the newspaper it could reach 300 million Brazilian
reals ($164 million).
GDF Suez SA (GSZ.FR) has a 50.1% stake in the Jirau project,
while two subsidiaries of Brazil's state-controlled power utility
Centrais Eletricas Brasileiras SA (EBR), or Eletrobras, have a 40%
stake.
Jirau, which is located on the Madeira River in the western
Amazon, will generate around 3,450 megawatts of electricity, enough
to power roughly 10 million homes.
The project has a total investment cost of up to BRL12 billion
and is expected to start operations in 2012.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521;
rogerio.jelmayer@dowjones.com