Energia
VELCAN SA ANNOUNCES THE CANCELLATION OF ITS CABUI CONCESSION IN BRAZIL
PRESS RELEASE
Luxemburg, 21 October 2016
Velcan SA announces that The Brazilian Regulatory Authority (Aneel) has cancelled the Cabui Project concession attributed in 2014 to Velcan.
To keep the concession active, Velcan would have had to give a security deposit of USD 1.7m which would have been lost in case the project is eventually not built or is delayed. The current economic crisis, the recent marked preference of the Brazilian Government preference for Wind and Solar power, the interest rate increases of the government infrastructure bank (BNDES) and the highly variable currency contribute to a difficult planning environment. Given of the above and the current uncertainty of demand in the Brazilian energy market, Velcan does not think it was worth risking such an amount of money.
The cost capitalized on Cabui project, including land acquisition, had already been fully impaired in the past years and this cancellation will not have any negative impact on the net result of the Group.
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Investor Relations Contact investor@velcan.lu
Velcan (ALVEL FP) is a company from Luxemburg, developing and operating hydroelectric concessions in emerging countries such as India, Indonesia, and Brazil.
Velcan also operates administrative and financial offices in Singapore, Mauritius and Dubaï.
The company was launched more than 10 years ago by its reference shareholder Luxembourg Hydro Power SA, owned by Velcan's management team and Crédit Agricole Capital Investissement & Finance.
Velcan is listed on the Paris Stock Market (Euronext Alternext/Ticker ALVEL/ISIN FR0010245803).
Velcan never performed any Public Offer as understood under Directive 2003/71/CE of the European Parliament and Council.
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