Corporate Finance

Brazil Seeks $17 Billion Investment for Nuclear Power Plant

Investors will be allowed a maximum participation of 49% maintaining, therefore, the control of the state over the power plant.

Investors will be allowed a maximum participation of 49% maintaining, therefore, the control of the state over the power plant.

On July 12th Brazilian publication Valor reported that the government of Brazil aims to recommence  construction of the nuclear power plant Angra 3, in the state of Rio de Janeiro.


Four groups are in contention to become the partner of the state in this endeavor: Rosatom (Russia), CNNC (China), Kepco (South Korea) and EDF/Areva/Mitsubishi (France and Japan). The biggest concern of the Brazilian government, however, lies in the amount of money required to build the nuclear structure ‒ $17 billion reais ($5.4bn).


“Private players wish to participate to help finance Angra 3. There are discussions going on, because the current legislation still foresees the monopoly of the state. Consequently, this would have to happen with a state-owned company holding at least 51% of the business, with 49% going towards the private player. And we need to check the economic model, to assure it is profitable for the companies,” claimed Celso Cunha, the CEO of the Brazilian Association for the Development of Nuclear Activities.


“Angra 3 is something irreversible, from our perspective,” added the CEO, highlighting that, on top of the necessity of $17 billion reais to finish the project, not finishing it would mean a loss of $12 billion. According to Eletronuclear, the state-owned company that will run the project, as of now, the plant is two-thirds complete.


In June the minister of Mines and Energy, Fernando Coelho Filho, claimed that the government had received offers from multinational companies, with whom they’d entered into dialogue. In a meeting in the Commission of Services of Infrastructure of the Senate, he said that the idea was to have a public-private partnership, in which the private party would ensure the completion of the works.


“In my opinion, it makes sense to complete Angra 3. A lot has been done in the project. We are exchanging information with Eletronuclear to understand what can be done, how we can help and what we can do,” claimed Ivan Dybov, CEO of Rosatom in Latin America.


Cooperation between Russia and Brazil was one of the topics discussed duringpresident Temer’s visit to Russiain June, although no new agreements between the countries were signed, on that occasion. “We are happy that this issue is being discussed. The cooperation is important, not only in the construction of nuclear power plants and in the cycle of its fuel, but also in nuclear medicine and the usage of isotopes,” said Mr. Dybov. The Brazilian government estimate thatcompletion of Angra 3  will occur in 2026.


“In view of the latent necessity for stable energy offering, the nuclear expansion comes across as the natural option. However, the commencement of the development of the first project after the completion of Angra 3 shall occur only after the end of a ten-year period, due to the due dates involved for studies and obtaining of licenses,” said the Ministry of Mines and Energy.


The CEO of Abdan, however, deemed as “timid” the position of the government concerning nuclear energy, as Angra 3 is its only ongoing project for this type of energy generation.


The construction of Angra 3 was halted in September 2015, when the suppliers stopped deliveries  due to the lack of payment, leading the government to open an internal process to investigate irregularities in the contracts of the project.


Earlier this year, a Mexican power plant received a financing of $500,000,000. Read more here:



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