ATE II Transmissora de Energia

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In November 2004, ANEEL, Brazil’s federal electricity regulator, awarded a 30 year contract to ATE II Transmissora de Energia SA to build, maintain, and operate a new 922 km transmission line connecting the northern and northeastern regions of Brazil. The line was designed to run from the Colinas substation in the state of Tocantins to the Sobradinho substation in the state of Bahia passing through the states of Maranhao and Piaui. According to the IDB, the project was vital in linking regions with surplus generation to regions with energy deficits. ANEEL awarded to the contract through a competitive tender to the consortium that paid the highest price to the government. Fourteen bidders were present, but Transmissora de Energia SA presented the winning offer of 107.57 mln Brazilian reais ($39 mln/29.91 mln euro). ATE II Transmissora de Energia SA was a special purpose company created by the Spanish engineering firm Abengoa to manage the project. Abengoa owned 100% of the project company. The total project cost was estimated at US $440.6 million. Construction began in 2005, but financial closure was reached in June 2006 with the approval of US $119.5 million loan from the Inter-American Development Bank (IDB). US $11.8 million of the IDB loan was granted as a complimentary line of credit. Accompanying this loan was debt financing from the Brazilian development bank BNDES and co-lenders for a total project debt financing of approximately US $280 million. The remainder was to be financed through equity.