China Three Gorges Corporation (CTG)—a state-owned power company—agreed on Wednesday to operate two major Brazilian hydroelectric power stations for the next 30 years. The $3.7 billion deal makes CTG the biggest player in Brazil’s hydropower plant auction this year, a government initiative aimed to narrow Brazil’s budget deficit.
The deal gives CTG—the sole bidder—operation rights to the Jupia and Ilha Solteira dams, which boast a combined capacity of 5,000 megawatts generating an annual revenue of about $632 million
CTG is world’s largest hydroelectric operator, and constructed and operates the world’s largest hydropower project, the Three Gorges Dam in Hubei province, China. CTG established its presence in Brazil back in 2011 when it invested in Portuguese energy firm Energias de Portugal. This past August, CTG bought controlling stakes in three energy businesses from Brazilian infrastructure company Triunfo Participacoes e Investimentos SA for $538 million.