Wärtsilä delivers two power plants to Brazil at value of EUR 188 million

Wärtsilä has in March signed for two turnkey power plants to two Brazilian power producers. The combined value of the orders is EUR 188 million (approximately BRL 500 million). The two orders will be included in Wärtsilä's first quarter orderbook. The power plants are expected to be fully operational at the beginning of 2010.

"Important factors in Wärtsilä winning these contracts was the high total efficiency provided by Wärtsilä's engines and our ability to provide a total power solution including turnkey delivery and full operations and maintenance of the plants after delivery. Furthermore, as Wärtsilä already has a number of large power plants in Brazil, the company can readily deliver strong local support," said Robson Campos, Regional Director, Wärtsilä Power Plants in Brazil.

Borborema Energética SA, a Brazilian independent power producer, has ordered 20 Wärtsilä 20V32 engines providing 175 MW of installed electrical capacity and 164 MW of net electrical generation. The installation is to be located in the city of Campina Grande, Paraiba State, a strategic electrical point 500 meters above sea level. The plant will run on viscosity fuel (1200 cst) and will be connected to the main national grid. Construction is scheduled to begin in July 2008. The value of the order is close to EUR 100 million. A full operations and maintenance (O&M) agreement is also under negotiation.

The second order, the value of which is EUR 88 million,is from Termelétrica Viana SA and comprises 20 Wärtsilä 20V32 engines giving 175 MW of installed electrical capacity and 170 MW of net electrical generation. The Viana project is controlled by a Brazilian Private Equity Fund managed by UBS Pactual, who also owns another power plant with five Wärtsilä 18V46 generating sets. Viana's power plant will run on high viscosity heavy fuel oil and will be connected to the main national grid. Construction will start in October 2008. Wärtsilä has also signed a full O&M agreement to operate and maintain the Viana plant for 10 years after its completion.

Both the Borborema and Viana installations will be operated in hot stand-by mode with short notice switchover capability to baseload operation.

To date Wärtsilä has designed, projected and installed sixteen power plants in Brazil. These new orders will, together with the existing power plants, produce a combined generating capacity of more than 1100 MWe.