Sterlite Power to Sell its Arcoverde Project in Brazil for About $35.5 Mn

Network Planning Group under PM Gati Shakti Gives Nod to Infra Project on Renewable Energy

The motive behind the construction of Arcoverde Project was to expand the flow of renewable energy in the State of Pernambuco in Brazil.

Global power transmission assets developer Sterlite Power has entered into a sale agreement with V2i Transmissão de Energia S.A. for its Brazilian transmission project called Arcoverde.

As per the deal, V2i Transmissao de Energia S.A. will pay USD 35.5 million to Sterlite Power, subject to various adjustments.

The motive behind the construction of Arcoverde Project was to expand the flow of renewable energy in the State of Pernambuco in Brazil.

Commenting on the deal, Sterlite Power, CEO, Pratik Agarwal said “we are proud to have delivered our first successful project to support the SIN – Brazilian National Grid. Through this transaction we monetize our first asset and thereby attract equity capital to reinvest in our portfolio of greenfield projects.”

However, the conclusion and effectiveness of this sale transaction is subject to compliance with certain preceding conditions, the company said.

“The Arcoverde project is an example of our operational excellence. This project was delivered 28 months ahead of schedule and is consistent with our business model, where we generate growth capital by attracting investments for our developed assets,” said Rui Chammas, CEO, Sterlite Brazil.

The company had won this ‘Arcoverde’ project in April 2017, and had commissioned record 28 months ahead of the deadline, August 2021, set by the Brazilian Electricity Regulatory Agency, ANEEL.

Meanwhile, the foreseen investment by ANEEL to this project was USD 41 million, its concession will end in 2047 and currently it has RAP of USD 6.15 million.