The president of Eletrobras, José da Costa, presented today (28) in Brasilia, the Business and Management Master Plan (PDNG) for the period between 2014 and 2018. According to the executive, the Plan foresees investments of R$ 60.8 billion for the five-year period, in three areas of the company's business, where Generation will receive R$ 35.4 billion, Transmission R$ 17.3 billion and Distribution R$ 8.1 billion.

The negative result of R$ 6.3 billion in year 2013 did not quite shake the confidence of the executive in the future of Eletrobras. "The result was affected by non-recurring events such as the Resignation Incentive Plan (PID)" said Costa. The PID was responsible for an expense of R$ 1.7 billion last year, but, according to the president of Eletrobras, it will set off quickly. "The plan will lead to a reduction of R$ 1.2 billion per year in the payroll", told José da Costa, who is of the opinion that the result of this year will be very different from 2013. "All our studies indicate that Eletrobras will show profit in 2014", he said.

José da Costa said that out of the total funds required to carry out the PDNG-2014/2018, R$ 33.1 billion are already contracted. The sources of funds already secured are divided into R$ 14.2 billion from damages obtained by the anticipation of concession renewals, R$ 13.5 billion from contracted loans and R$ 5.4 billion from company's cash. The president of Eletrobras does not believe that the lowering of the rating of the company by Standard & Poor's, following the evaluation of the country risk will affect its ability to obtain loans. "Eletrobras is a solid company, the leader in the electricity market in Brazil, which owns 33% of the generation capacity and 52% of the transmission lines in the country, and one of the 15 largest in the world in its field of business. With this portfolio, I don't think there should be any difficulty to obtain funding for our projects", he said.

For the president of the company, the size of Eletrobras is a decisive factor in its favor. As an example, he cited the presence of Eletrobras Furnas in the consortium that won the auction today of the plant Três Irmãos, which belonged to Cesp. In association with Fundo Constantinopla (Constantinopla Fund), the subsidiary of Eletrobras won the venture with a proposition to receive R$ 31.6 million per year over 30 years. "The operation of Três Irmãos is advantageous for us because we have other plants in the region. We are taking advantage of our size", analyzed Costa, who, however, did not say whether the Eletrobras companies will participate in the A-0 energy auction, scheduled for April 25. "We will have to see about the conditions. It is not a simple analysis".

With the investments set forth in PDNG, Eletrobras, according to José da Costa, will have in 2018 an installed capacity of 56.4 GW, 13.4 GW (31.1%) higher than in 2014, and out of this total, 12.8 GW are already contracted. "Then we will have a market share of 35% of the generation of the country", pointed out Costa. In the transmission, the share of Eletrobras should remain with the growth of the extension of transmission lines from 57,300 km in 2014 to 76,500 km in 2018 - more 19,200 km, of which 7,4000 km are already contracted. As to distribution, the company's goal is to have 4.7 million customers, compared to 3.9 million in 2014 (an increase of 20.5%).

The restructuring of the business model of the Eletrobras System is another opportunity to reduce costs according to José da Costa. Since September, technicians of Eletrobras companies have been studying the issue, with the advice of the German consulting firm Roland Berger. "It is a task that should be completed in June this year", he said.


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