ANNOUNCEMENT 29 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 billion to finance the construction of a wind project managed by EDP Group.

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. "Projeto eólico no Rio Grande do Norte apoiado pelo BNDES fornecerá energia limpa a 800 mil residências" de 29 de janeiro de 2020. Available at: https://www.bndes.gov.br/wps/portal/site/home/imprensa/noticias/conteudo/projeto-eolico-no-rio-grande-do-norte-apoiado-pelo-bndes-fornece-a-energia-limpa-a-800-mil-residencias/!ut/p/z1/xZXLctowFIafpQsvhY7vdncu4ZIAzbQJAbxhZFs2Sm3JkQW0b1-ZMtO0KU46DK03Gl38_Ue_dI5wjJc45mTHCqKY4KTU_VXsrafhZDB2bmEK7r0D0ZXtO3N_AJPAwovDAjjxRYDj0_87Q8APOMZxylWtNniV8Iw2a8YbxdQ2PURgwEZU1ABW1ZLyhhjAhWIpI40BqeCKbjNhQC3FI1UCUVGyVCAukGQCFZJoIMraAakoIrVgRPdqWgp00EK5kJymegpRTmXBCCq1EtH9AABVrESSNiyjvFVsQ61TluFVECbU8jITpX7uIcd1A5SYpolIliRpHlp2YCVHazr2Hr_F2o4Fcbfzizbe54Tba3sA0bg_dZ3BxByF9nFB1-n9ShhdTS2Ipu4Qhp8-jgaRhVc6SP_0Jk282DG6x3N9ApW-T3c_PfQ9CCHNMuSZDiAHiIVC18uQnxPiWHrWSxM8hhcKdx9sreBfu9NRCGPLP1OhewMP3mXx7mXx55pz81r66vrAHp-e4kgncZuNXxVe_lUWtxJFKZIftSbiiR0UOJY0p5LK3lbq4Y1SdfPeAAP2-33vQO8VYtdLpB6pdR2odXa3Gg1T9KXSn7gb0ehAf8d1uzkJ7NNuvqkgdONvrcvi3cvi_YviHedM_M1r1VbfEkvO-jN9S2qiNojxXODlP3pYzk6j__AY1tW8CuxvDH35HOzv801RrWcD2z025a5aBKqdqPrJ82YRNNG770wg7pE!/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: 29 Jan 2020 | Removal date: open ended

State loan

On 29 January 2020, the BNDES announced the approval of a BRL 1 billion loan (circa USD 237 million at the time of the announcement). The beneficiary was a Special Purpose Company which is controlled by MV Holding S.A. and owned by the Portuguese EDP Group.

The objective of the resources is to finance the construction of six wind farms with an installed capacity of 319.2 MW in the region of Rio Grande do Norte.

The total costs of the projects are estimated at circa BRL 1.3 billion (over USD 308 million) from which the resources provided by the BNDES represent 70% of the total. 

The construction of the farms is to start in 2021 and are expected to terminate in 2022. A total of 700 direct and indirect jobs are expected to be created.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 29 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 billion loan (circa USD 237 million at the time of the announcement) allocated to EDP Group is subject to local content requirements.