OREANDA-NEWS. December 9, 2011. MPX announced today that the Parnaiba Thermoelectric Complex in the State of Maranhao were found eligible for a BRL  1.6 billion long-term financing package by the Placement Committee of the Banco Nacional de Desenvolvimento Economico e Social (“BNDES”).

The final terms of the financing, including the maturity and cost, are still subject to approval by BNDES’ Credit Committee and Board of Directors. Given the total amount of the funding requested by MPX (BRL  1.6 billion) and the necessary investment for the implementation of the plants, the capital structure of the project is expected to be approximately 70% debt and 30% equity. It is anticipated that the total investment for the construction of three facilities will reach approximately BRL  2.3 billion, with more than 80% of this amount being disbursed by the end of 2012. MPX’s consolidated cash position totaled BRL  1.4 billion at the end of 3Q11, and the Company thus has the capacity to meet the capital requirements of these projects, as well as support its plans for future growth.

Additionally, MPX has concluded negotiations to supply a total of 230 average MW in the free market, bringing the total contracted capacity of the Parnaiba Thermoelectric Complex to 1.5 GW. The Company also has an installation license for an additional 2.2 GW, which can be sold as the Company’s ongoing drilling campaign identifies new, commercially viable fields for gas production. The gas supply will be guaranteed by two fields, Gaviao Real and Gaviao Azul, for which the development plans have been presented to the National Agency for Petroleum, Natural Gas and Biofuels (ANP), by OGX Maranhao, an MPX-related company.

The integration of energy production and natural gas supply in the Parnaiba Basin is an important competitive advantage for the Company and will create significant value for MPX’s shareholders over the coming years.