MPX Energia and Energias do Brasil (EDP) closed the dollar- and reais-denominated long-term financing for their $1.36 billion Porto do Pecem project in Brazil on 10 July. The Porto do Pecem unit is a 720MW facility, located 40km from Fortaleza, in the state of Ceara in north-eastern Brazil.
It is the first financing for an imported-coal project in Brazil. The success of the deal can be explained in a large part by the early preparations of the sponsors in agreeing terms between themselves, securing licenses and talking to the Inter-American Development Bank and BNDES.
Even before the energy auction in October 2007, the sponsors had already secured an installation license – a first step before obtaining a preliminary environmental license – and had been talking to IDB and BNDES about financing from May 2007 onwards.
"As a coal project, lenders had concerns about greenhouse gas emissions, particularly development banks and multilaterals,"...
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