344
L. de S. Soares et al.
4. Consortium EPC (Engineering, Procurement and Construction), responsible for
the construction of the project, in accordance with the bases of the EPC Contract
signed with SSP. Design, engineering, machinery and equipment suppliers
assume joint responsibility.
When defining the project financial structure, several actions towards finalization
of the financing are conducted, involving several participants under the coordination
of a Leading Bank of Finance, responsible for the unionization of resources needed
with other banks, multilateral and export credit agencies, promotional banks and
investors in general.
The structuring of financing for the Santo Antônio HPP construction was made
with limited resources from shareholders (Limited Recourse), for Santo Antônio
Energia (SAESA), as a Society of Specific Purposes (SSP), which allows to isolate
the risks of the project from the risks of shareholders.
SAESA is a wholly owned subsidiary of Madeira Energia S.A (MESA), formed
by Odebrecht, Furnas, Andrade Gutierrez, Cemig and a Holding Fund—FIP, having
as shareholders Santander and Banif.
For project eligibility in the Project Finance modality, the Santo Antônio HPP
must meet requirements related to:
1. When the project is completed and its operation has the capacity to generate cash
according to the agreed grounds to allow for the payment of the contracted debt
for the feasibility of the project;
2. When the risk matrix (identified and respective mitigating factors) has been
mapped;
3. The project must be sustainable in the social, economic and environmental
spheres, adhering to the Equator Principles.
Considering the size of the developed project, a risk management structure is
necessary and applicable in all its steps. In projects based on Project Finance, this is
a mandatory requirement for the following actions:
1. Risk assessment and analysis;
2. Allocation of responsibilities;
3. Determination of appropriate risk mitigation;
4. Risk management between specific parties;
5. Monitoring, reporting and dissemination procedures;
6. Testing and audit procedures.
These actions require considering mitigations of project risks in order to monitor
precautionary signs, their respective controls, and planning of emergency actions.
Compliance with the imposed rules made the construction of HPP Santo Antônio
particularly relevant regarding the growth of the socioeconomic status in the region,
in addition to protecting the environment. The company, in addition to meeting the
legal and mitigation impact commitments, fulfills a positive agenda in promoting
social gains and economical for local communities.
One of its highlights is its management of potential impacts that cause indirect
effects on the indigenous territories of the Karitiana and Karipuna peoples beyond
L. de S. Soares et al.
4. Consortium EPC (Engineering, Procurement and Construction), responsible for
the construction of the project, in accordance with the bases of the EPC Contract
signed with SSP. Design, engineering, machinery and equipment suppliers
assume joint responsibility.
When defining the project financial structure, several actions towards finalization
of the financing are conducted, involving several participants under the coordination
of a Leading Bank of Finance, responsible for the unionization of resources needed
with other banks, multilateral and export credit agencies, promotional banks and
investors in general.
The structuring of financing for the Santo Antônio HPP construction was made
with limited resources from shareholders (Limited Recourse), for Santo Antônio
Energia (SAESA), as a Society of Specific Purposes (SSP), which allows to isolate
the risks of the project from the risks of shareholders.
SAESA is a wholly owned subsidiary of Madeira Energia S.A (MESA), formed
by Odebrecht, Furnas, Andrade Gutierrez, Cemig and a Holding Fund—FIP, having
as shareholders Santander and Banif.
For project eligibility in the Project Finance modality, the Santo Antônio HPP
must meet requirements related to:
1. When the project is completed and its operation has the capacity to generate cash
according to the agreed grounds to allow for the payment of the contracted debt
for the feasibility of the project;
2. When the risk matrix (identified and respective mitigating factors) has been
mapped;
3. The project must be sustainable in the social, economic and environmental
spheres, adhering to the Equator Principles.
Considering the size of the developed project, a risk management structure is
necessary and applicable in all its steps. In projects based on Project Finance, this is
a mandatory requirement for the following actions:
1. Risk assessment and analysis;
2. Allocation of responsibilities;
3. Determination of appropriate risk mitigation;
4. Risk management between specific parties;
5. Monitoring, reporting and dissemination procedures;
6. Testing and audit procedures.
These actions require considering mitigations of project risks in order to monitor
precautionary signs, their respective controls, and planning of emergency actions.
Compliance with the imposed rules made the construction of HPP Santo Antônio
particularly relevant regarding the growth of the socioeconomic status in the region,
in addition to protecting the environment. The company, in addition to meeting the
legal and mitigation impact commitments, fulfills a positive agenda in promoting
social gains and economical for local communities.
One of its highlights is its management of potential impacts that cause indirect
effects on the indigenous territories of the Karitiana and Karipuna peoples beyond