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| Eletrobras to invest $500 million in US |
| By Efe July 29, 2010 02:01:00 AM |
| | Brazilian state-controlled power company Eletrobras plans to invest up to $500 million in electrical transmission projects in the United States beginning next year, CEO Jose Antonio Muniz Lopes said Thursday.
The company is considering partnering with U.S. firms on potential electrical grid interconnection projects, Lopes told a press conference in Brasilia, adding that the U.S. government is planning to integrate its electricity grids but that different state laws are holding back the initiative.
He said those plans could mean high demand for electrical transmission lines in the United States, a market sector in which Eletrobras – Brazil’s largest electricity group – has ample experience.
Eletrobras will closely study the alternatives and the profit potential before deciding whether to participate in any of the projects, the CEO said.
“The most prudent thing is to partner with existing companies” to gain knowledge of the U.S. market, he said.
The executive added that Eletrobras most likely will use its investment funds to buy stakes in companies with which it will form joint-venture partnerships.
The investment strategy is part of an internationalization plan that Eletrobras began by setting up offices in Montevideo and Lima, where the company is negotiating with the Peruvian government on the possible construction of several hydroelectric power stations.
The company also plans to open a third office for Central America, probably in Panama, to study possible business opportunities in that region.
Lopes said Eletrobras will give priority in its investment decisions to electricity-generation projects in the Western Hemisphere, mainly Argentina, Peru, Colombia and the United States.
Eletrobras is controlled by the Brazilian government but its shares also trade on the Sao Paulo and New York stock exchanges.
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