October 18, 2018 / 11:32 PM / a month ago

China's State Power considering bids for Brazilian hydro and thermal plants

SAO PAULO, Oct 18 (Reuters) - China’s State Power Investment Corporation is in talks to acquire two additional hydroelectric dams and thermal plants in Brazil, a person with knowledge of the matter said on Thursday.

One of the hydroelectric dams is Usina Três Irmãos, 800 MW dam in Sao Paulo state, controlled by Brazil’s infrastructure group TPI- Triunfo Participações e Investimentos SA, the person added, requesting anonymity.

Brazilian newspaper Valor Economico reported the talks over Tres Irmaos on Thursday on its website. State Power and Triunfo did not immediately respond to requests for comment.

But the source added a negotiation with Triunfo would not be easy, because the company was singled out by Brazilian prosecutors earlier this month for not collaborating with a corruption probe investigating the company’s toll-road operation.

The Chinese power company is also expected to present a binding offer by the end of the month for the control of the Santo Antonio hydropower dam, in the northern state of Rondonia. Talks to acquire the dam have been ongoing for almost two years.

State Power is also considering a bid for two coal thermal plants that France’s Engie SA owns in the southern Brazilian states of Santa Catarina and Rio Grande do Sul. Engie put the plants for sale six months ago. Engie did not immediately respond to a request for comment.

Adriana Waltrick, State Power’s Brazil country head, told Reuters in May that the company wanted to keep investing in acquisitions after paying $2.25 billion for a license to operate the São Simão hydropower plant, previously run by state-owned Companhia Energética de Minas Gerais. (Reporting by Tatiana Bautzer)

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