Gerasul is the largest electricity producer in southern Brazil. It has 3,700 installed MW (3/4 hydroelectric), with 1 100 MW under construction (5,099 MW in October 2001).
In 1998 it was privatised, but in the end there was only one bidder - Tractebel - and the price paid was only the minimum reserve price of $0.8billion, without a premium of 30% as had been hoped for by the Brazilian authorities.
According to Lyonnaise des Eaux, the entire production of Gerasul is covered by long-term sales contracts. Consumption is growing in the region.
Trcatbel intially bought 42% in September 1998, and increased its stake to 68% (with 77% of the votes) in January 1999.