Brazil ministry says to reject Cemig renewal of hydrodam rights

jueves 17 de diciembre de 2015 17:57 GYT
 

By Luciano Costa

Sao Paulo Dec 17 (Reuters) - Brazil plans to reject a request by Cia Energetica de Minas Gerais to renew its concession to operate the 424 megawatt Jaguara hydroelectric dam, distributing its power rights among other distributors, the Energy Ministry's press office said on Thursday.

The decision by the ministry comes after Cemig, as the company is known, and the government failed to resolve their differences over the future of the dam, one of the company's largest, during an arbitration process managed by Brazil's Superior Justice Tribunal, the country's No. 2 court.

Cemig believes it should be able to automatically renew its rights, which expired in August 2013, for 20 years under the terms of its concession with the Brazilian government. (Reporting by Luciano Costa in Sao Paulo; Writing by Jeb Blount; Editing by Andrew Hay)