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Wärtsilä Signs Contract to Build a Power Plant in Manaus

Posted on October 10, 2005

Wärtsilä Corporation signed a contract with Geradora de Energia do Amazonas S/A, which is part of the Servtec group, to build a power plant in the city of Manaus, in northern Brazil. Located in Ponta Negra, the 83 MW plant will be built under an EPC (equipment, procurement and construction) contract comprising five Wärtsilä 18V46 generating sets. Construction of the plant began in September 2005 and the plant is scheduled to start up in July 2006. A contract to operate and maintain the facility is also under negotiation.

According to Mr Lauro Fiúza Junior, president and CEO of Servtec, the contract signed with Wärtsilä has ideal synergies for this kind of project. "We have financial advantages and we mitigate project risks since Wärtsilä is assuming the responsibility to deliver the plant ready to operate instead of having two companies working on the same project (one for equipment supply and the other to build it)" he says.

Servtec was one of the winners of the tender carried out in 2004 by Manaus Energia, subsidiary of Eletronorte, to supply electricity to Manaus. The Power Purchase Agreement term is for 20 years and involves a total project investment of around US$ 100 million, of which the Wärtsilä contract is around US$ 65 million. The additional capacity intends to fill the shortfall in energy supply in the region.

"The engines will initially run on heavy fuel oil (cheapest fuel available) and will be converted to operate on natural gas as soon as the gas pipeline from Uruacu is in operation. Engines with multi-fuel capabilities are ideal for plants located in remote cities such as Manaus. The project also makes the gas pipeline feasible since it assures the need of gas in the buyers' end", says Mr Robson Campos, Regional Director of Wärtsilä.

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