Electricity Distribution Infrastructure Modernization Project (NDB-ELECTRICITYDISTRBRAZ)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
State of São Paulo
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • New Development Bank (NDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 23, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Companhia Paulista de Força e Luz
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 896.29 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 5098
Converted using 2024-10-23 exchange rate.
Bank Documents
Primary Source

Original disclosure @ NDB website

Updated in EWS Jan 7, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the NDB, the Project supplements the Borrower’s capital investments program, enabling expansion and modernization of its power distribution infrastructure and is aligned with the requirements of the concession agreement under which the Borrower operates.
The Project components comprise High Voltage (HV) distribution lines and substations; Low Voltage (LV) distribution lines, automation equipment and transformers; and new home connection equipment, to be implemented in the state of São Paulo.

The Project will promote social inclusion by providing access to electricity to presently unserved households through new connections (the Project is expected to increase the connectivity to more than 370,000 homes); improve energy efficiency by reducing technical and commercial losses in the Borrower’s electricity distribution grid, that will lead to economic savings for the end-users of energy and will also contribute to Green House Gas (GHG) emissions reduction; lead to service quality improvement through new equipment or modernizing existing equipment. Achievement of the Project’s results will have a demonstration effect within the electricity distribution sector in Brazil.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Companhia Paulista de Forca e Luz distributes electrical power. The Company operates hydroelectric and thermoelectric plants, as well as offers concessions for the distribution and generation of electric power plants. Companhia Paulista de Forca e Luz serves customers in Brazil.

State Grid Corporation of China operates electricity networks. The Company provides power transmission, power system management, power network maintenance, and other services. State Grid of China provides its services throughout China.
In 2017, the State Grid Corporation of China acquired a controlling stake in Companhia Paulista de Forca e Luz.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
State Grid Corporation of China Parent Company Energy owns Companhia Paulista de Força e Luz (CPFL Energia SA) Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

NDB Team Leader:

Jatin Pal Singh
Email: Singh.jatinpal@ndb.int

Client - Companhia Paulista de Força e Luz:

Tiago da Costa Parreira
Email: gcf@cpfl.com.br / MercadodeCapitais@cpfl.com.br

ACCESS TO INFORMATION

You can submit an information request for project information though a form at the bottom of the following webpoage https://www.ndb.int/about-us/contact-us/. Alternatively, you can send an e-mail to info@ndb.int. 

ACCOUNTABILITY MECHANISM OF NEW DEVELOPMENT BANK

The New Development Bank (NDB) does not currently have an independent accountability mechanism to accept complaints related to NDB-financed projects. The Bank does have a whistleblower mechanism that receives complaints about misconduct related to corruption, fraudulent practices and instances of money laundering in projects financed by the NDB and/or against the NDB staff members. To learn more about the whistleblower mechanism and how to file a complaint, access this webpage at: https://www.ndb.int/about-us/whistleblowing/.

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