ATE III Transmissora de Energia

Active

On April 27, 2006 Abengoa SA signed a 30 year contract with Aneel, Brazil’s electricity regulator to develop, construct, operation and maintain approximately 459 kilometers of transmission lines from the State of Para to the State of Tocantins. Upon the completion of the Project, it would be possible to exploit the energy generation produced from the Serra da Mesa Hydroelectric Plant and the Cana Brava Hydroelectric Plant for the Serra da Mesa Substation in an amount of 5,100-MW. The project was originally called Section 1 of the North-South Interconnection III and included the following works: •A 500 kilovolt, 40 km transmission line connecting the Maraba and Itacaiúnas substations in Para. •A 230 kilovolt, 110 km transmission line connecting the Itacaiúnas and Carajas substations in Para. •A 500 kilovolt, 304 km transmission line connecting the Itacaiúnas and Colinas substations in Para and Tocantins. •A 500/230 kilovolt Itacaiunas substation in the state of Para. •Enlargement of three existing substations along the three transmission lines. The project was awarded to Abengoa SA in November 2005 through Leilao No. 001/2005-Aneel (“Bid Notice”) a public bidding process that granted a 30-year concession for Lot A, which included Section 1 of the North-South Interconnection III (the “Project”). Abengoa SA won the tender by offering the lowest annual revenue 54.114 million reais which was 49.7% below the asking price. The number of final bids for the auction was not publically available. The US $401 million project reached financial closure in March 2008 after the Inter-American Development Bank signed a senior loan and syndication with Abengoa SA. The IDB financing included an A loan of up to US$95.4 million from the bank's ordinary capital and a syndicated B loan of about US$104.6m, consisting of funds from financial institutions that were to subscribe to participation agreements with the IDB. The IDB and Abengoa SA selected three banks as lead arrangers: Natixis, ABN AMRO and BES for the syndicated B loan. The financing was approved in February 2008, signed in March 2008 and closed on April 22, 2008. The debt to equity ratio was 51% to 49%.