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Alstom signs contract to refurbish a hydropower complex in Bahia, Brazil

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Alstom has signed a 22 million euro contract with Companhia Hidro Elétrica do São Francisco (CHESF) for the modernization of units 1 and 2 of the Paulo Afonso hydroelectric plant located on the River São Francisco in the state of Bahia.

Under the terms of the contract, Alstom will be responsible for disassembly, design, manufacture, assembly, supervision and safety of the equipment. Alstom will also provide studies to maintain the effectiveness of new machinery.

In the 180 MW Paulo Afonso I facility, which entered into operation in 1955, Alstom will modernise three generators, one turbine and hydro mechanicals will be upgraded. In Paulo Afonso II, whose first unit went into operation in 1961, Alstom is retrofitting six 443 MW generating units. Besides having the modernization of the same hydro mechanicals components of Paulo Afonso I, Alstom will also readjust cooling systems and lighting.

The projects are expected to be completed in 2012 when Paulo Afonso I will generate around 11% more energy and Paulo Afonso II over 19% than it did before the upgrade.

All components are made at Alstoms São Paulo Taubaté factory, unit capable to produce and offer the complete portfolio of Hydro products and services as all type of turbines, generators for all applications, hydro mechanical equipments and small power plants. The factory employs around 800 people in manufacturing area and contributes with projects in local market and Latin America region, as well as worldwide with projects in different countries as China and India.

The contract will strengthen the partnership between Alstom and CHESF, part of the publically-owned federal Eletrobrás group, where Alstom has also in recent reference service activity in the Boa Esperança power plant, Piauí state.

"Alstom has served as an important partner in the recovery of plants. The equipments refurbished in this project, for example, were manufactured by other vendor, and the companys going to service all the necessary adjustments, demonstrating technical capacity and experience to perform that work in different types of plants throughout the country," said Marcos Costa, Head of Power Brazil and Latin America.

Alstom is a global leader in power generation, with a market share of 35% in the market of equipment and systems for Brazilian Hydro industry. The company supplied equipment for more than 50% of the installed capacity in the country and has been a leader in industrial machinery manufacturing plants in the country for the past ten years, having produced more than 100 turbines and generators for energy projects in Brazil.

Plants over 20 years old and whose generators exceed 120,000 hours of operation need to undergo major maintenance and can be refurbished to produce extra capacity. In Brazil, around 60 hydroelectric power plants with more than 30MW generation are 30 years old and in need of modernisation, representing 33 GW of electricity. Alstom recently signed a contract the rehabilitation of units 3 and 4 of the Power Plant President Medici - UTPM - Candiota, located near the town of Candiota, Rio Grande do Sul with Companhia de Geração Térmica de Energia Elétrica (CGTEE).

About Alstom

Alstom is the worlds leader in power generation and transmission and railway transport, and a worldwide reference in innovative technologies showing respect for the environment. Alstom builds the fastest trains and the largest capacity automated metros in the world, supplies integrated power generating plants, the associated services for the various power sources, such as hydro-electricity, gas, coal, nuclear and wind power generation, as well as also developing ultra-high voltage equipment, direct current interconnections, in addition to managing electric power networks and integrating renewable power sources to existing networks. The Group employs some 96,000 people in 70 countries and recorded sales of 23 billion Euros in the 2009/2010 period (not considering the Power Transmission sector, recently aggregated to the Group).

In Brazil, Alstom has marked its presence over the last 55 years and is currently staffed by 5,000 direct employees, working in seven units installed in the states of Sao Paulo, Minas Gerais, Rio Grande do Sul and Rondonia. In 2011, the Company will be operating its 8th unit in the Country, in the State of Bahia.

INFORMATION TO PRESS

Communications Director of Alstom Brasil: Juliana Souza
juliana.souza@crn.alstom.com / Phone: (11) 3612 7071

Press Relations: CDN Comunicação Corporativa
Mariana Maciel: mariana.maciel@cdn.com.br / Phone: (11) 3643-2734
Fernanda Sobral: fernanda.sobral@cdn.com.br / Phone: (11) 3643-2789