The hydroelectric project is built across the Tocantins river and is built at an estimated cost of €2.1bn with debt financing provided by a 24-year loan agreements by the Brazilian Development Bank (BNDES) and a consortium of Brazilian banks.
Commenting on the company’s strategy for the region GDF SUEZ chairman and CEO Gerard Mestrallet remarked that Brazil was vital to its plans in the region.
"We are keen to participate in meeting the growing energy needs of the country through the development of projects that provide clean and renewable energy," said Mestrallet.
The project will sell 256MW of its output to various distribution companies under a 30-year power purchase agreement signed in 2007.
Tractebel Energia owns a 40.07% stake in the project with Vale, Alcoa and Intercement being the other joint-owners; the company will also will manage operations of the plant on behalf of the consortium.
