Amazonia-Eletronorte

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In 2003, the Brazilian power regulator Aneel awarded a greenfield build, own, and operate contract for a transmission line in Brazil’s Mato Grasso state to the Amazonia-Eletronorte consortium. The project company was to transmit power through the concessional period of 30 years. The 193 km line was expected to connect the Coxipo, Cuiaba, and Rondonopolis stations in the Mato Grasso state. The project, signed by the concessional agreement in May 2004, was one of seven transmission concessions awarded by Aneel in 2003-2004. All lines cover 1,787 km and will include investments of US$614 million. Aneel was prompted to release the bids after Brazil’s National Privatization Council (CND) issued a resolution in June 2003 calling for seven groups of transmission concessions. Amazonia-Eletronorte Transmissora e Energia SA originally was joint venture of state-owned Electronorte (49%) and the Amazonia consortium (51%). After some changes in ownership of the Amazonia consortium (including Mastec Brasil selling its stake), it was comprised of Engenharia Comercio e Industria (11.76 percent), Linear Participacoes e Incorporacoes (8.65 percent), Bimetal Industria (19.83 percent), and Alubar Cabos SA (10.76 percent). The consortium was selected on the basis of offering the lowest transmission tariff. The project cost was estimated at US$37.8 million ($111 million real). Project financing was provided by the Banco Nacional de Desenvolvimento Economico e Social (BNDES) for US$24.9 million and by the sponsors (US$12.9 million). Construction began in August 2005 and the project was expected to start operations in mid 2006, allowing for a 13 month construction period. By August 2006, operations had commenced. Mastec Brazil sold 25% stake; Centrais Elétricas do Norte do Brasil (Eletronorte): 49% • Linear Participações e Incorporações Ltda: 8,65% • Bimetal Indústria e Comércio de Produtos Metalúrgicos Ltda: 19,83% • Encomind Engenharia Comércio e Indústria Ltda: 11,76% • Alubar Cabos S.A.:10,76%