ANNOUNCEMENT 02 Jan 2020

The National Bank for Economic and Social Development of Brazil (i.e. BNDES by its acronym in Portuguese) approved a loan of BRL 1.3 billion to Força Eólica do Brasil S.A., a company of Iberdrola.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

National Bank for Economic and Social Development. Banco Nacional de Desenvolvimento Econômico e Social. Últimas Notícias. "BNDES aprova R$ 1,3 bilhão para a implantação de projeto eólico na Paraíba" de 02/01/2020. Available at: https://www.bndes.gov.br/wps/portal/site/home/imprensa/noticias/conteudo/bndes-aprova-1-3-bilhao-para-implantacao-de-projeto-eolico-na-paraiba/!ut/p/z1/tZXNdtowEIWfpQsvhYQk_9CdSwwkQDltQgjecGRZYKW25NgC2revTFnQpjjpoXijY2n0zZ1rjQxj-ARjxXZyw4zUiuX2fRl7q0lvHI3oDE2Q-0BReEN8OvcjNA4wXBwC0JknRDA-v58OEHyEMYy5MqXJ4DJRqahXUtVGmi0_KHBQpgvhIFmUlVA1c5DSRnLJagdxrYzYptpBh42AlZXeMdAFBCQyz5gGJasYsFtzpgzjdiIVwAY9C6OB0LnkGih2iJIJa5SUXKZw6eMuYgRTEBBMAOUJBYxiBlwq6BrzgCbcO1beUlr8HudaAuJ2YxeN3lPC7JZEKBz1Jy6Nxt1hjxwD2j7O74ThzQSjcOIO0ODL52EUYri0Iv3zRXbhYifFHs6Vrgp7XO5PPPRQD_E0BV6XIkARw6Dneinw18x6aVc9nsARepXh_hOxGfxbdzLsoRH2L8zQXsCjd128e138pebcvdWdtv3l88tLHNoebZrtu4FP_9SkTYpNrpNfV0moEhJsYFyJtahE1dlWdjozpqw_OshB-_2-c6B3NnrXSSo7U9o2L3Vlmhy1NOJ1pr9xM11boX_i2t0cB6TFzfdcCO34Gb4u3r0u3r8qntIL8Xdv3bYXn-T__7uxknA17U_twS2ZyYBUa30UdTG7LOZFQH5I8O1rsH9YZ5tiNY2IexzyXbEITLNQ9JPTYRHU4YefHIixmQ!!/dz/d5/L2dBISEvZ0FBIS9nQSEh/

Brazilian National Development Bank. Banco Nacional de Desenvolvimento Econômico e Social. Regulamento Geral e Metodologias Específicas. "Regulamento para credenciamento e financiamento de módulos e sistemas geradores fotovoltaicos" Availabe at: https://www.bndes.gov.br/wps/portal/site/home/financiamento/servicos-online/credenciamento-de-equipamentos/normas-aplicaveis-credenciamento/regulamento-credenciamento-financiamento-fotovoltaicos

Brazilian National Development Bank. Banco Nacional de Desenvolvimento Econômico e Social. ANEXO 1 - ETAPAS FÍSICAS E CONTEÚDO LOCAL QUE DEVERÃO SER
CUMPRIDOS PELO FABRICANTE. Available at: https://www.bndes.gov.br/wps/wcm/connect/site/10f19d81-33df-4c4c-95e0-d7909975c911/credenciamento_aerogeradores_anexo1.pdf?MOD=AJPERES&CVID=lmylw0v

Inception date: 02 Jan 2020 | Removal date: open ended

State loan

On 2 January 2020, the BNDES announced the approval of a BRL 1.3 billion loan (circa USD 322 million at the time of the announcement). The beneficiary was Força Eólica do Brasil S.A. which is managed by Neoenergia, a company of the Iberdrola group.

The objective of the resources is to finance the construction of twelve wind farms with an installed capacity of 370.8 MW in the region of Paraiba. 

The total costs of the projects are estimated at BRL 1.6 billion (over USD 396 million) from which the resources provided by the BNDES represent 80% of the total. 

The construction of the farms started at the end of 2019 and are expected to terminate in 2022. A total of 1,300 jobs are expected to be created during the construction phase.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 02 Jan 2020 | Removal date: open ended

Local sourcing

The finance conditions of the BNDES for energy projects establish concrete local content requirements. In terms of wind power, the development bank establishes the following requirement from which at least three must be fulfilled:

  • At least 70% of the towers have to be manufactured in Brazil;
  • Manufacture of the Spades in Brazil;
  • Assembly of the cube in Brazil with the casting of local origin; and/or
  • Assembly of the wind turbine in Brazil.

Departing from the above mentioned, it can be concluded that the BRL 1.3 billion loan (circa USD 322 million at the time of the announcement) allocated to Força Eólica do Brasil S.A. is subject to local content requirements.