The Serra do Facão Hydroelectric Power Station is being constructed on the São Marcos River, on the border between the states of Goiás and Minas Gerais. The undertaking is the responsibility of the Serra do Facão Energia S.A.(SEFAC), a company formed by Furnas Centrais Elétricas S.A., Alcoa Alumínio S.A., Camargo Corrêa Energia and DME Energética. The estimated investment is R$ 800 million and the forecast is that during the implementation phase 4,800 jobs will be created, of which 1,600 will be direct and 3,200 indirect. 

In addition to constructing the power station the Serra do Facão project also includes the construction of a 30 km transmission line, the formation of a reservoir and various works for reinforcing the infrastructure of the municipalities. The construction work follows a timetable that is divided into three parts: Phase zero comprises the installation of the construction site and lodgings for the workers, a canteen, a leisure area and offices. The Serra do Facão Hydroelectric Power Station is planned to start generating 210 MW commercially in October, 2010.

Phase 1 includes the excavation and earth-moving works for constructing the coffer-dams, the spillway and the tunnel for diverting the river. Removal of this material will make it possible to start Phase 2, which is the concreting work, which consists in constructing the dam and the power station.

At the same time that work is being done on the construction site, other services are taking place, such as buying up properties, resettling the local population and relocating the infrastructure in the area of the future reservoir and the Serra do Facão hydroelectric power station, which includes building and raising bridges, relocating transmission lines and building roads, in addition to the programmed activities relating to the various environmental projects.

The forecast is that the reservoir will start being filled in the second half of 2009 and the first generating unit will come on stream in May, 2010. 

The reservoir of the Serra do Facão Hydroelectric Power Station will cover 227 km2 and will partially affect five municipalities in Goias (72.8% of Catalão; 22.4% of Campo Alegre; 0.6% of Cristalina; 0.4% of Davinópolis and 0.1% of Ipameri) and one in Minas Gerais (3.7% of Paracatu).

The Serra do Facão project was presented and widely debated in public hearings held in all the communities located in the municipalities in the area affected by the enterprise. The public hearings indicated a set of improvements and commitments that were incorporated into the Environmental Impact Study, making it possible to obtain the Prior License in April, 2002, a document that testifies to the project’s environmental feasibility.

In September, 2006, IBAMA (Brazilian Institute of the Environment and Renewable Natural Resources) renewed the Installation License, thus permitting the construction of the Serra do Facão Hydroelectric Power Station. The use concession for exploring the power station was acquired at a public auction carried out by ANEEL (National Electricity Agency) on July 12, 2002, in the Rio de Janeiro Stock Exchange. 

SEFAC’s shares are split as follows: Furnas Centrais Elétricas S.A. has 49.47%, Alcoa Alumínio S.A. has 34.97%; DME Energética, 10.09% and Camargo Corrêa Energia S.A., 5.46%. 

The energy produced by the Serra do Facão Hydroelectric Power Station will feed into the SIN (National Grid System) and can be distributed throughout Brazil.