The Ministry of Mines and Energy (MME) announced that the government expects to define by June the business model that will be adopted for the conclusion of the work on the Angra 3 plant.
Public notice for Angra 3, the most convoluted work in Brazil that led Temer to prison, is scheduled for the end of this year. Angra 3, is managed by Eletronuclear, a subsidiary of Eletrobras. The project, which is still a white elephant in the Brazilian energy scenario, had been paralyzed since 2015, long before Temer's arrest, when the project had already been targeted by Lava Jato, and the president of Eletronuclear, Othon Luiz Pinheiro, was arrested. Corruption schemes involving the Angra 3 power plant go further, in another case, the Federal Audit Court (TCU) prohibited the construction companies Queiroz Galvão, Empresa Brasileira de Engenharia, Techint Engenharia e Construção and UTC Engenharia from closing public contracts due to fraud in bids for Angra 3.
The president of Eletronuclear, Leonam Guimarães stated that the government will decide by June the business model for the resumption of works on Angra 3, according to him, the definition of the model will occur after carrying out a survey with international companies about business alternatives for the conclusion of the plant. According to Guimarães, regarding potential partners, he said that three companies from China, one from the United States, one from France, one from South Korea and one from Russia are interested.
According to the executive, there are several business models that could be adopted for the conclusion of Angra 3. One possibility, according to Leonan, is the corporate model with the minority participation of the private partner in Eletronuclear. There is also the Epecista model (EPC), whereby someone builds the plant and receives the investments throughout its useful life, with the energy sale contract. And there would still be the possibility of creating a Specific Purpose Society (SPE), whereby the investor, also a minority, would complete the construction and later become one of the partners of that SPE, which would be restricted to Angra 3.
O MME Minister Bento Albuquerque intends to include the plant as a priority project in the Investment Partnership Program (PPI). Created in 2016 by the Michel Temer government, the PPI, in addition to concessions, also takes care of partnerships with the private sector. The partnership suggested by the Minister of Mines and Energy would be limited to works to complete the nuclear project, and would not grant the plant to the private sector.
According to Leonan, to complete the work on Angra 3, R$ 15 billion will be needed. These resources will come from the financing of the partners that will participate in the works. The expectation is that the works will be ready by 2026. If the government decides not to complete the works on the plant, around R$ 12 billion will be needed.
The resumption of the work has been defended by Bento Albuquerque.
“It is a priority project of the government. The next step is for it to be included in the Investment Partnership Program. We think this depends on a PPI board meeting that just needs to be scheduled. There, Angra 3 will be considered a priority project of the PPI”, declared Bento Albuquerque on March 21st. The meeting is expected to take place by April 10.
According to the Minister of Mines and Energy, the expectation is that works on the plant will be resumed at the beginning of the second half of this year, which would allow for completion by 2026.
