July 1, 2016 / 4:35 PM / 2 years ago

China's Three Gorges pays 4.8 billion reais, takes over Brazil dams

SAO PAULO (Reuters) - China’s Three Gorges Corp transferred 4.8 billion reais ($1.48 billion) to Brazil’s government on June 30, fulfilling the payment for concessions to operate two of Brazil’s largest hydroelectric dams, the company said on Friday.

The Chinese company said it is taking over on Friday the operation of Jupiá and Ilha Solteira dams, with combined capacity to produce 5 gigawatts (GW). With that, it rises to third among the country’s biggest power producers, behind Centrais Eletricas Brasileiras SA and Engie.

“We are glad to have successfully completed the transition phase and taken over operation of two key projects in Brazil’s power sector,” Li Yinsheng, head of CTG Brazil unit, said in the statement.

In total, the Chinese company paid 13.8 billion reais for the concessions.

It said it has so far reached agreements with 84 percent of the workers in the dams for them to continue in their posts under the new administration. Both dams were previously managed by Brazil’s Companhia Energética de Sao Paulo.

China’s Three Gorges is the world’s largest hydroelectric power producer.

Reporting by Marcelo Teixeira; Editing by Phil Berlowitz

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