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Brazil's development bank is set to give AES's cash-strapped Brazilian utility Eletropaulo Metropolitana Electricidade de Sao Paulo some crucial breathing space by not calling in a $231 million loan. An official close to the negotiations says the National Bank for Economic and Social Development (BNDES) does not have any immediate plans to exercise the option, which became callable recently after Eletropaulo defaulted on debt. Kiko Brito, an Eletropaulo spokesman, declined comment and calls to BNDES were not returned.

Following is a directory of upcoming projects and related financing in the Latin American power sector. To report new deals or provide updates, please call Kasey Wehrum, Reporter, at (212) 224-3226 or email: kwehrum@iinews.com

PG&E National Energy Group is looking to divest its 6 GW New England portfolio--valued at approximately $1.6 billion--and has hired Lehman Brothers to advise on the sale. A New York banker close to the situation says the embattled power producer, which is being squeezed to the brink of collapse by its limited access to the capital markets, needs to raise cash to help restructure its debts with key lenders and bondholders. The portfolio consists of nine plants primarily situated in Massachusetts (see table, page 8).

AnInternational Power-led consortium has pulled together a team of six banks and is looking to add at least a couple more lenders as mandated lead arrangers to provide project-level financing for its prospective 1.7 GW Um Al Nar power and water desalination project in Abu Dhabi.

Société Générale has emerged as the frontrunner to land the latest Omani independent power and water desalination project advisory mandate, after filing the most competitive bid late last month.

Negotiations between the U.K. government, British Energy and its creditors over the restructuring of the embattled nuclear power generator's debt obligations are expected to go down to the wire this week with a group of project lenders pushing hard for better terms than those on offer.

Björn Domke, a syndicate banker in HypoVereinsbank's Munich-based project finance group, has joined KfW Group in Frankfurt as v.p. to fire up its non-recourse loan syndication effort. Domke joined last week in a new position after almost two months in between posts.

Credit Lyonnais is planning to hire a weather derivatives marketer over the next few weeks to meet strong demand from, among others, wind farm developers.

Australasia

Westdeutsche Landesbank is looking to launch an approximately $200 million project loan toward the end of next month to part finance the $380 million acquisition of a gas pipeline by an investment affiliate of American International Group. An official close to the deal says WestLB already has closed bridge financing and is now considering bringing on board a small number of arrangers to refinance the bridge facility.