Mitsui & Co Ltd: Participation in Jirau run-of-the river hydropower project in Brazil

  Mitsui & Co Ltd: Participation in Jirau run-of-the river hydropower project
  in Brazil

UK Regulatory Announcement


This announcement is for our U.S. $5,000,000,000 Euro Medium Term Note

Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President & CEO: Masami
Iijima), has agreed with GDF SUEZ Energy Latin America Participações Ltda.
(“GSELA”), subsidiary of the global energy group GDF SUEZ S.A. (“GDF SUEZ”),
to participate in 3,750MW Jirau run-of-the river hydropower project
(“Project”). Mitsui, through its Brazilian subsidiary to be newly established,
will acquire 20% equity of ESBR Participações S.A. (“ESBRP”), which owns the
Project. Capital expenditure of the Project is estimated approximately BRL16
billion (JPY800 billion) as of December 2012.

The Project is to construct and operate the Jirau Hydropower Plant, which is
located on the Madeira River in the State of Rondônia in northern Brazil, and
sell electricity mainly to electric power distributors based on long-term
power purchase agreements for 30 years. Its total generation capacity of 3,750
MW will make the Project the fourth largest hydropower plant in Brazil. A loan
agreement on a project finance basis has already been executed with BNDES
(Brazilian Development Bank) and a group of commercial banks, and both the
operational license and environmental license have been already granted. Full
commercial operation with all 50 turbines is expected to start in 2015.

The transaction further expands the long-term partnership between Mitsui and
GDF SUEZ, following a successful track record of joint investment and
cooperation, including projects in Canada, Europe, Middle East & Africa, Asia
and Australia. The Jirau transaction represents an extension of this
partnership to Latin America, and a joint strategy of accelerating
developments in fast growing markets and expanding their renewable portfolios.

Hydropower does not require fossil fuel and emits almost no greenhouse gases.
The Project adopts run-of-the-river type of hydropower, making use of the
natural river flow for power generation. The project gives due consideration
to the surrounding biodiversity such as installing fish transportation system
and relocation of existing vegetation. Hydropower provides base power load
amounting to 90% of Brazil’s power generation and by participating in Jirau
Project, Mitsui will contribute to supporting the growing electricity demand
in Brazil.

Mitsui will hold, after its participation in Jirau Project, approximately
6,694MW on an installed net generating capacity basis, including projects
under construction. With this Project, hydropower will account for 1,287 MW,
or approximately 19% of the abovementioned generating capacity. Mitsui will
pursue further investment in power projects in Latin America and other regions
with growth potential, aiming to develop a diversified power generation
portfolio with a balanced fuel-mix in various geographical locations.

Closing of the transaction is expected to occur during the second half of
2013, upon satisfaction of certain conditions, including obtaining approvals
from Brazilian regulatory authorities and lenders of the Project.

Jirau Hydropower Project Overview

Project Company       Energia Sustentável do Brasil S.A. (“ESBR”)
                       Subsidiary of Mitsui 20%

                       GSELA 40%
                       Companhia Hidro Elétrica Do São Francisco

                       Eletrosul Centrais Elétricas S.A. (“Eletrosul”) 20%(*2)
Location               Madeira River, State of Rondônia, Brazil
Capacity               3,750 MW(Turbines 75MW × 50unit)
Asset Type             run-of-the river hydropower
Project Cost           Approximately Brazilian real 16 billion (JPY
Commercial Operation   2015

*1 Indirect ownership shares through the holding company, ESBRP

*2 Subsidiary of Centrais Elétricas Brasileiras S.A.(Eletrobras)


Company      GDF SUEZ S.A.
Head Office   Paris, France
President     Gerard Mestrallet (Chairman & CEO)
Business      Electricity, natural gas, and energy and environmental services
Foundation    July 2008

For diagrams omitted, please see our home page.


Mitsui & Co Ltd
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