ATE VI - Campos Novos Transmissora de Energia S.A.

active

In December 2006, Abengoa was awarded in a competitive bidding process organized by the regulatory agency ANEEL the 30-year contract to build and operate a 131 km transmission line (Dona Francisca - Santa Maria 3 and Campos Novos - Videira) located in the states of Rio Grande do Sul and Santa Catarina. Besides Abengoa, two other bidders took part in the contest: CONSORCIO VITORIA (Cia Técnica de Engenharia Elétrica (Brasil)– 51% - líder; Eletrosul Centrais Elétricas S/A (Brasil) – 49%) and the Colombian company ISA - INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. The bidding criteria set by ANEEL was the lowest required annual revenue. Abengoa S.A presented the lowest offer, a total value of US$ 5.4 million (BRL 10.7 million), 24.11% below the ceiling set by the regulatory agency. The contract was signed in June 2007, and the sponsor created the company ATE VI - Campos Novos Transmissora de Energia S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 58.6 million (BRL 117.2 million) in the transmission line. The construction works commenced in May 2009, but financial closure was only achieved in November 2009, when the sponsor was granted a US $ 39.6 (BRL 79.1 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. The section Campos Novos-Videira commenced operations in August 2009, while the section Dona Francisca-Santa Maria 3 was still under construction, as of December 2009.