ATE V - Londrina Transmissora de Energia S.A.

active

In May 2007, Abengoa was awarded in a competitive bidding process organized by the regulatory agency ANEEL the 30-year contract to build and operate a 132 km transmission line ( Londrina – Maringa and Jagaraiva – Itarare II) located in the states of Paraná and São Paulo. Besides Abengoa S.A., nine other companies took part in the contest. The bidding criteria set by ANEEL was the lowest required annual revenue. Abengoa S.A presented the lowest offer, a total value of US$ 4.9 million (BRL 9.8 million), 42.18% below the ceiling set by the regulatory agency. The contract was signed in June 2007, and the sponsor created the company ATE V - Londrina Transmissora de Energia S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 63.6 million (BRL 127.13 million) in the transmission line. The construction works commenced in May 2009, but financial closure was only achieved in October 2009, when the sponsor was granted a US $ 34.6 million (BRL 69.3 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. The section Londrina-Maringa commenced operations in November 2009, while the second section was under construction, as of December 2009.