Rio, July 15, 2003 (Agência Brasil - ABr) - The National Economic and Social Development Bank (BNDES) will provide R$ 9.3 million in loans for a thermal improvement project at one of the industrial plants of the Santa Terezinha Sugar Mill, the largest company in the sugar/alcohol sector in the state of Paraná. The project's budget amounts to R$ 14.8 million, and, as well as saving on electric energy costs, it will prepare the mill for co-generation of energy through the use of pressed sugar cane stalks and make possible a parallel increase in the production of sugar and absolute (anhydrous) alcohol.

With the investment encompassed in the project, the Santa Terezinha company will increase its steam generation capacity by 50%, through the combustion of pressed sugar cane stalks. As a result, the firm will become self-sufficient in its energy needs, and it will be able to sell eventual energy surplusses on the market. The loan will also permit the construction of 50 houses for employees who work at the plant, in the municipality of Paranacity, in the northwestern region of the state. Among the improvements the project contains are: replacement of the structures of two grinders and the sugar cane conveyor belts; installation of machinery that will permit greater raw material yields; and the installation of a new boiler, capable of generating 150 tons of steam. (DAS)