Power Generation

Avelar Energy has entered into a joint venture agreement with Atel Italia Holdings S.r.l., the Italian energy holding belonging to Atel Group. The joint venture EnPlus is an Italian limited liability company owning rights for a 407.9 MW CCGT plant currently under construction, to be built in San Severo (close to Foggia, Puglia). Avelar holds 30% of this joint venture, Atel Italia Holdings S.r.l. owns 60%, and 10% belong to EN&EN S.r.l., an Italian company owning a wide pipe of hydroelectric and wind projects currently under development. The construction phase is expected to last a maximum of 32 months; the expected commercial operations date is January 1, 2011. The plant capacity will be entirely allocated to the owners of the joint venture through a 15-years tolling agreement, according to their respective quotas in EnPlus.

Avelar Energy entered into a Long Term Gas Transportation Contract with Trans Austria Gasleitung GmbH (“TAG”). Starting from October 1st, 2008, Avelar Energy secured transportation capacity of approximately 150 million cubic meters of natural gas p.a. for a contractual period of 20 years. Moreover Avelar Energy secured additional transport capacity for 130 million cubic meters from the same TAG pipeline starting from Oct.1 2009.