THE

CAPIM BRANCO

HYDROELECTRIC COMPLEX

Flavio Dutra DoehlerExecutive Coordination

Aimorés and Capim Branco May 13, 2005

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THE CAPIM BRANCO

HYDRO PLANTS

The complex is made up of the Capim Branco I andCapim Branco II hydroelectric plants.

A public concession. Auction: December 2000 (without environmental licence).

Build and commercially operate for 35 years.

Cnotract signed on Jan. 29, 2001.

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ENTREPRENEURS

Stockholdings:

Company Stake (%)CVRD 48.42

Cemig Capim Branco Energia 21.05Comercial e Agrícola Paineiras 17.89Companhia Mineira de Metais 12.63

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EPC – The Construction Consortium

The Capim Branco construction consortium is made up of the following companies:

• Engineering/Construction works: Construtoras Andrade Gutierrez, Norberto Odebrecht andQueiroz Galvão;

• Electromechanical supplies: Energ Power, VA Tech Hydro Brasil and Voith Siemens Hydropower Generation;

• Project planning: Leme Engenharia, Engevix Engenharia and Intertechne Consultores Associados S/C.

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CEMIG’S PARTICIPATION

The Capim Branco Energy Consortium (CCBE),composed of the private-sector companies CVRD,Votorantim, Suzano and Camargo Correia, andCemig, associated to bid at the Aneel auction.

Since Cemig had the environmental and engineering studies and has experience in building hydroelectric plants, it received a 20% stake inreturn for these studies, and for Quality and O&Msupervision services to be provided during and after construction.

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THE AGREEMENT

The understanding was made by a Letter Agreement between the fourcompanies of CCBE and Cemig.

Above a certain budget limit for socio-economic and environmental costs, Cemig is committed to contributing to the company financially.

Camargo Correia left the project, and Cemig acquired a stake proportional toits own, of 1.0526% - resulting in its present stake of 21.0526%.

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Construction and quality

Cemig’s Quality Supervision services certify that the product contracted through the global price contract is delivered at contracted levels. Project approvals, field supervision, releases of payment and certifications of acceptance of the plants are made by Cemig.

Management of the construction, including the environmental control plan (“PCA”), is carried out by a team of professionals hired by theCCBE consortium, with head office in Araguari.

The consortium members take part in management through amanagement board, which decides by majority vote, on which Cemighas a seat.

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THE CAPIM BRANCO COMPLEX

Location and access

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CAPIM BRANCO I

Rotor chamberSubstation Power

channel

Potential chamber

Diversion tunnel

Spillway

Dyke

Dam

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Capim Branco I hydro plant: dataLocationLocationAraguari River between Municipalities of Uberlândia and Araguari

Reservoir Reservoir Area flooded: 18.66 km²Water level variation: zeroFilling time: 5 daysInstalled power: 240 MW (3 Francis rotors)Flooding quota: 624.00 mAssured energy: 1,357,800 MWh/year

DamDamType: Earth and rock fillHeight: 55 metersLength: 610 meters

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The Capim Branco II Hydro plant

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Capim Branco II hydro plant: Data

LocationLocationAraguari River between municipalities of Uberlândia and Araguari

ReservoirReservoirArea flooded: 45.11 km²Water level variation: zeroFilling time: 14 daysInstalled power: 210 MW (3 Francis turbines)Flooding quota: 565.00 mAssured energy: 1,147,560 MWh/year

DamDamType: Earth and rock fillHeight: 60 metersLength: 800 meters

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MAIN DATA

• Start dates:- Capim Branco I : September 1, 2003- Capim Branco II: March 1, 2003

• Start of generation:- Capim Branco I : January 31, 2006 (1st Unit)- Capim Branco II: December 15, 2006 (1st Unit).

THE CAPIM BRANCO HYDROELECTRIC COMPLEX

Flavio Dutra DoehlerExecutive Coordination

Aimorés and Capim Branco May 13, 2005