Araraquara Transmissora de Energia

active

In February 2009, Araraquara Transmissora de Energia S.A., a subsidiary of the Spanish company CYMI Holding S.A., was awarded in a competitive bidding process the contract to build and operate two 15 Km transmission lines and a substation located in the state of Sao Paulo. CYMI Holding belonged to the Spanish group ACS. Besides CYMI Holding S.A., three other groups took part in the contest: Consorcio Madeira Transmissao (CTEEP 51%; FURNAS 24,5%; CIA HIDRO ELÉTRICA DO SÃO FRANCISCO 24,5%); Consorcio TME Trans (NEOENERGIA 34%; ALUPAR 22%; CEMIG 22%; EMPRESA AMAZONENSE DE TRANSMISSÃO 22%); and Camargo Correa S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. CYMI Holding S.A. presented the lowest offer, a total value of US$ million (BRL 15.5 million), 29.5% the ceiling set by the regulatory agency. The contract was signed in February 2009, and the sponsor created the company Araraquara Transmissora de Energia S.A. to lead the project during the 30-year contract period. As of 2009, the sponsor committed to invest US$ 114.7 million (BRL 229.4 million) in the transmission line. The construction works commenced in March 2009, but financial closure was only achieved in November 2010, when the sponsor was granted a US$ 42 million (BRL 84 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Construction works started in mid-2010 and should be concluded by February 2012. In August 2012, commercial operations commenced. In October 2012, the Chinese company State Grid Corporation acquired two transmission lines that belonged to Cymi Holding.