Brazilian bank loans $5.8 mln to hydropower project

Brazil's property state-owned Social and Economic Development Bank (BNDES) is to pump one billion reals (580 million U.S. dollars) into the construction of the Simplicio hydropower plant in the country's southeast.

BNDES said in a statement that Simplicio will be the second largest hydropower plant in the state of Rio de Janeiro. With a capability of generating 333.7 megawatts, the plant will be able to answer the power demand of a city with 1.5 million inhabitants.

The agreement was signed between BNDES and Furnas Centrais Eletricas, a major Brazilian property power company Thursday.

By 2010, when the plant is expected to start operation in a position to supply hydroelectric power will be increased by 28 per cent. Rio de Janeiro now has 10 hydroelectric plants with a total capacity of1, 200 megawatts.

BNDES expects the project to create 4000 direct jobs and 10000 indirect jobs. The project will also include the construction of sewage purification stations and the creation of environmentally protected areas near the dam.

According to BNDES, the operation has been included in a package of infrastructure projects in the programme for the acceleration of economic growth, developed by the federal government to promote economic development in the country.

The Bank is currently engaged in 105 energy projects in the programme, the total investment amounting to 62.8 billion reals (36.3 billion dollars).