The Machadinho Hydroelectric Power Plant is located on theUruguaiRiver, between Piratuba (Santa Catarina) and Maximiliano de Almeida (Rio Grande do Sul). The construction work started in March 1998 and took five years to conclude. In this period US$ 618 million was invested in the project. The e hydroelectric power plant has an installed capacity of 1140 MW.

The idea of building a hydropower plant arose in the mid-1970s, but only in 1996, when Eletrosul Centrais Elétricas S.A. put out a procurement bid looking for partners to make it feasible to conclude the undertaking did the project take shape. In 1997 Grupo de Empresas Associadas Machadinho (GEAM) [Machadinho Associated Companies Group] signed the Incorporation Contract of the Machadinho Consortium with Eletrosul for implementing the Machadinho Hydroelectric Power Plant project.

Construction of the power plant was the responsibility of the companies that formed the GEAM Consortium, which was subsequently succeeded by Machadinho Energética S/A (MAESA). Eletrosul, which was succeeded by Gerasul and by Tractebel Energia S/A was responsible for the technical management of theproject and the operation and maintenance of the power plant.

The Machadinho Consortium comprises eight major companies: Companhia Brasileira de Alumínio (CBA), Votorantim Cimentos Brasil Ltda., Alcoa Alumínio S/A, Tractebel Energia S/A, Vale S/A, Companhia Estadual de Geração e Transmissão de Energia Elétrica (CEEE-GT), Camargo Corrêa Cimentos S/A and DME Distribuição S/A (DMED).

The Machadinho Hydroelectric Power Plant came on-stream in February 2002. Its reservoir covers land in 10 municipalities: Piratuba, Zortéa, Celso Ramos, Anita Garibaldi, Campos Novos, Capinzal in Santa Catarina; and Machadinho, Maximiliano de Almeida, Barracão and Pinhal da Serra in Rio Grande do Sul.

With its operational activities NBR ISO 9001, ISO 14001 and OHSAS 18001certified, the plant is a milestone in thehistory of Brazilianhydropower plants, since it was concluded in a record time of 52 months, the result of the joint effort of its employees, shareholders and partners.