Sinval Zaidan Gama

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In 2018, Chesf celebrates 70 years of history. A milestone for a company that has grown along with Brazil’s Northeastern region, overcome many challenges, and is now working hard to become more modern and efficient. The last few years have been challenging for Chesf. However, these challenges also brought opportunities for change, overcoming difficulties, and reinvent ing ourselves. In 2017, it was no different, but we faced the challenges with a renewed spirit and willingness to once again leave our mark across the Northeast.

In order to achieve this strategy, and economic and financial plan was developed, which made resources available for the needs defined. Revenues from the Basic Network of the Existing System (RBSE), as of July, and dation in payment of some Special Purpose Entities (SPE), formed the main pillar for executing the plan. Tight expenditure control was also carried out in order to contribute the necessary resources.

With this in mind, we implemented the Construction and Modernization Plan, an important initiative that mobilized all our staff and stakeholders to deliver the projects within the established deadlines or before the scheduled dates. It is important to highlight the annual record of deliveries of transmission projects and the inauguration of Chesf’s first wind farms, Casa Nova II and III (state of Bahia).

These deliveries provided greater transformation capacity, allowing the transmission of more energy and with better quality for residential, commercial, and industrial consumers. The highlights in the Northeastern region include reinforced service to the metropolitan regions of Fortaleza, Teresina, Aracaju, and Salvador, as well better reliability for the entire system in the region.

And this work on modernizing the electricity system and the constant search for improved performance have already yielded positive results, obtaining the best operational performance indexes in five years and achieving a significant reduction in the number of work-related accidents with lost time.

Another noteworthy initiative focused on the future in 2017 was the launch of our Solar Energy Reference Center in Petrolina (Cresp) focused on developing scientific and technological knowledge on solar energy generation. With an investment of BRL 54.3 million, we began building a solar power plant to generate 3 MWp for generation research, considering that the center will be located in the region with the greatest potential for solar energy in the country.

We face the challenges with renewed spirit and with the desire to leave our mark again in the Northeast

Our Research & Development area also gained prominence during the year by obtaining Chesf’s first patent, with the “Aplicativo para Regulação e Paralelismo de Transformadores de Potência” (“Application for Regulation and Parallel Operation of Transformers”). The technology regulates the voltage level that Chesf delivers to power utilities. Further proof of our strong capacity for reinvention, creativity, and efficiency.


Every change process requires adaptation to a new reality. Therefore, in 2017, we continued with the Extraordinary Retirement Plan (PAE), with the retirement of 464 employees from July to December. We also effectively implemented our Organizational Restructuring project, an important step towards modernizing Chesf, which integrates a series of measures to optimize costs and resume business sustainability. This new organization structure represented a reduction of 42.5% in appointee job positions, with cost savings of around 30%.

Another initiative that will mean good results for our operational efficiency, agility, and savings of resources is beginning the implementation - with all Eletrobras companies - of a Shared Services Center for common areas such as Procurement, Purchasing, Accounting, and Legal, which will avoid overlapping roles and will provide the potential for contracts that are more beneficial for the companies, following the example of the success of large corporations.

In addition to our internal issues, in 2017 we played a very important role in the face of the greatest water shortage experienced by the São Francisco River Basin in 80 years. In its fifth consecutive year of rainfall scarcity, the river reached its minimum volume of water. In order to guarantee multiple use of water by the riverside populations and following the decisions of IBAMA and the National Water Agency (ANA), we have been managing, since 2013, the flow of the São Francisco River downstream from the Sobradinho Reservoir. The reservoir has been fundamental to water availability in the region, especially for the more than three million inhabitants of Middle and Lower São Francisco River.

At the same time, when integrating the Sustainability area into the Planning and Innovation area, we will better address the issues related to this topic. I would like to reiterate that developing our business is only valid based on ethical values and principles, as well as full respect for all forms of human rights.

We are aware that 2018 will continue to be a year of many challenges to be overcome. The discussions that will take place during the year 2018, concerning the model for the Electricity Sector, should result in the solution to Chesf’s biggest challenge: increasing its revenue. But today it is clearer to us what the obstacles are and the best ways to face them in order to bring Chesf back to a scenario of growth and prominence in the Northeast. We will continue to commit to the Principles of the Global Compact, the Women’s Empowerment Principles, the Gender and Race Pro-Equity Program, and the Fight Against Sexual Exploitation of Children and Adolescents. We will reach our 70-year mark with the energy to change, grow, and reinvent. To this end, we have an engaged team, which demonstrates, every day, its commitment to contributing to the growth of Chesf, the Northeast region, and the whole country.

Enjoy your reading!

Sinval Zaidan Gama CEO