All agreed loans

Brazil. Bons Ventos Geradora de Energia S.A.

Date of loan: 14 Sep 2010
Country: Brazil
Customer: Bons Ventos Geradora de Energia S.A.
Amount in USD: USD 50 million
Amount in EUR: EUR 40.1 million
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for financing four wind parks with a total power generation capacity of 157.5 MW in Brazil. NIB's loan is co-financed with Brazilian development banks, BNDES and BNB. It is the first time for NIB to provide a loan in local currency in Brazil.

The borrower has installed 75 wind turbines, thereby establishing four wind parks located in the state of Ceará in the north-eastern part of Brazil. Currently, the Aracati site, where 67 of the 75 wind turbines are located, is the largest wind farm in Brazil in terms of power generation. Each wind park holds a 20-year power purchase agreement with the Brazilian federal utility Eletrobrás.

Bons Ventos Geradora de Energia S.A. is a special-purpose company owned by the Brazilian private equity fund FIP Brasil Energia, the power company Grupo Servtec and the industrial concern Grupo Ligna.

Advanced technology from a number of companies in NIB's member states was chosen to develop the project including OEM contracts.

Sustainability summary

The nature landscape in the area where the new wind parks are located is characterised by large sand dunes, 40 to 90 metres high. The wind turbines have been constructed on the top of the ridge formed by these dunes.  All project areas are protected by law and no construction is allowed due to their unique character and their value for tourism. However, the law allows exemptions in exceptional cases of public or social interest, under the condition that the environmental impact is insignificant.  In the case of this project, the negative environmental impact is acceptable, as it will be offset by the expected positive environmental effect of the sustainable generation of electricity.

Although the landscape will be changed as a result of the project, the risk for permanent damage to flora and fauna is expected to be small. The changes introduced to the landscape will be reversible. The sand dunes are continuously shifting and must be stabilised, as access roads in the area are in danger of being destroyed by the moving sand.

During the construction, several pre-colonial archaeological findings have been revealed. According to Brazilian legislation, these must be excavated by professionals and the company must have procedures for how to conserve not only items that are found but also those items that remain underground. Bons Ventos has published their findings.

Bons Ventos has initiated several social projects. Affected villagers have been compensated for inconveniences related to the project (such as traffic and limited access to the project areas) through improvements of roads, housing, social infrastructure and the provision of educational programmes.