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Participation in Jirau run-of-the river hydropower project in Brazil

May 13, 2013


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Masami Iijima), has agreed with GDF SUEZ Energy Latin America Participações Ltda. ("GSELA"), subsidiary of the global energy group GDF SUEZ S.A. ("GDF SUEZ"), to participate in 3,750MW Jirau run-of-the river hydropower project ("Project"). Mitsui, through its Brazilian subsidiary to be newly established, will acquire 20% equity of ESBR Participações S.A. ("ESBRP"), which owns the Project. Capital expenditure of the Project is estimated approximately BRL16 billion (JPY800 billion) as of December 2012.

The Project is to construct and operate the Jirau Hydropower Plant, which is located on the Madeira River in the State of Rondônia in northern Brazil, and sell electricity mainly to electric power distributors based on long-term power purchase agreements for 30 years. Its total generation capacity of 3,750 MW will make the Project the fourth largest hydropower plant in Brazil. A loan agreement on a project finance basis has already been executed with BNDES (Brazilian Development Bank) and a group of commercial banks, and both the operational license and environmental license have been already granted. Full commercial operation with all 50 turbines is expected to start in 2015.

The transaction further expands the long-term partnership between Mitsui and GDF SUEZ, following a successful track record of joint investment and cooperation, including projects in Canada, Europe, Middle East & Africa, Asia and Australia. The Jirau transaction represents an extension of this partnership to Latin America, and a joint strategy of accelerating developments in fast growing markets and expanding their renewable portfolios.

Hydropower does not require fossil fuel and emits almost no greenhouse gases. The Project adopts run-of-the-river type of hydropower, making use of the natural river flow for power generation. The project gives due consideration to the surrounding biodiversity such as installing fish transportation system and relocation of existing vegetation. Hydropower provides base power load amounting to 90% of Brazil's power generation and by participating in Jirau Project, Mitsui will contribute to supporting the growing electricity demand in Brazil.

Mitsui will hold, after its participation in Jirau Project, approximately 6,694MW on an installed net generating capacity basis, including projects under construction. With this Project, hydropower will account for 1,287 MW, or approximately 19% of the abovementioned generating capacity. Mitsui will pursue further investment in power projects in Latin America and other regions with growth potential, aiming to develop a diversified power generation portfolio with a balanced fuel-mix in various geographical locations.

Closing of the transaction is expected to occur during the second half of 2013, upon satisfaction of certain conditions, including obtaining approvals from Brazilian regulatory authorities and lenders of the Project.

Location Map

Location Map

Site View

Site View (Downstream view of the spillway and the right bank power house, taken in October, 2012)

Jirau Hydropower Project Overview

Project Company Energia Sustentável do Brasil S.A. ("ESBR")
Ownership(*1) Subsidiary of Mitsui 20%
GSELA 40%
Companhia Hidro Elétrica Do São Francisco ("Chesf") 20%(*2)
Eletrosul Centrais Elétricas S.A. ("Eletrosul") 20%(*2)
Location Madeira River, State of Rondônia, Brazil
Capacity 3,750 MW (Turbines 75MW × 50unit)
Asset Type run-of-the river hydropower
Project Cost Approximately Brazilian real 16 billion (JPY 800billion).
Commercial Operation 2015

*1 Indirect ownership shares through the holding company, ESBRP
*2 Subsidiary of Centrais Elétricas Brasileiras S.A.(Eletrobras)

Investment Structure

Investment Structure

GDF SUEZ

Company GDF SUEZ S.A.
Head Office Paris, France
President Gerard Mestrallet (Chairman & CEO)
Business Electricity, natural gas, and energy and environmental services
Foundation July 2008

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819