ANNOUNCEMENT 20 May 2020

The National Bank for Economic and Social Development of Brazil (i.e. BNDES by its acronym in Portuguese) approved a loan of BRL 1.2 billion to finance the construction of a wind project managed by Engie Brasil.

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. "Com financiamento do BNDES, parque eólico na Bahia vai gerar energia limpa para 850 mil domicílios" de 20 de maio de 2020. Available at: https://www.bndes.gov.br/wps/portal/site/home/imprensa/noticias/conteudo/com-financiamento-do-bndes-parque-eolico-na-bahia-vai-gerar-energia-limpa-para-850-mil-domicilios/!ut/p/z1/vZVNl5owFIZ_SxcsYyKED7ujDuqMWs90xlHZeAIESAsJhqjtv2-wLmynMtPjoWwCyeV5b15yLzCEaxhycmAZUUxwUujnTehsZ4NpMMELNEP2M0b-neXipRugqWfC1SkAXbl8BMPr7-MRgi8whGHMVaVyuIl4Qust47Viah-fMjBQLkpqIFZWkvKaGIgLxWJGagPFgiu6T0RzV4KUccL1Qkm5EiAR4EQDFZG7PQVUFCwWgBMQkZwRcCAMZFQSCSinMtMzhZYgTTgBno1AyQoNKbVUwUTdZFnFLIEbt0-x5SUmcKzUATiObUDMgQnSOE4iDxFMbPvsSsu2w_e42hIQtpu-avK9JCzurQD5k-HMxsG0Px5Y54C2D_c7YXw3M5E_s0do9Ph5HPgm3Ogk3eub7MPVgdEjXHIhS32Uni48dNAAxUkCnD5GACNigoHtJMBNCcGmXnXiCE7QK4WnT5ZWcO_t2XiAJqZ7o0L7Bl6cbvF2t_hbzXl4q3J1a2Bfd7vQ1_XbFOJ3Bdf_VMCNRFaI6Feb8XlkeRkMJU2ppLK3l3o6V6qqPxrIQMfjsXei9zJx6EVSz1S6BVRCqkajZoq-VvobNxe1TvRPXLubU89qcfM9DaEdvzC7xdvd4t1O8RjfiH94q9vefJL_769Ip2vK-XCuD3VFVA4YTwVcd69blcvSs34w8O2Ld3xO86zczgPLPg_FoVx5qlkoh9HlsPJq_8NPk0rLpA!!/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: 20 May 2020 | Removal date: open ended

State loan

On 20 May 2020, the BNDES announced the approval of a BRL 1.2 billion loan (over USD 210.8 million at the time of the announcement) to Engie Brasil, the largest private electricity producer in Brazil.

The objective of the resources is to finance the construction of the Campo Largo Wind Farm - Phase 2 renewable generation project in the region of Bahia. The project consists of 11 plants with 361.2 MW of installed capacity.

The total costs of the projects are estimated at circa BRL 1.6 billion (over USD 281 million). 

The construction of the farms is to start in 2021.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 20 May 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 1.2 billion loan (USD 210.8 million at the time of the announcement) allocated to Engie Brasil is subject to local content requirements.