ATE VIII Transmissora de Energia

active

In December 2010, the Spanish company Abengoa Concessoes Brasil Holding S.A. was awarded in a competitive bidding process the contract to build and operate 108-km connecting Itacaiunas-Carajas, located at the state of Para. Besides Abengoa Concessoes , two other companies took part in the bidding process: CME - CONSTRUCAO E MANUTENCAO ELECTROMECANICA S.A.; and ELETRONORTE - CENTRAIS ELETRICAS DO NORTE DO BRASIL S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Abengoa presented the lowest offer, a total value of US$ 2.7 million (BRL 4.9 million), 11.85 % below the ceiling set by the regulatory agency. The contract was signed in June 2011, and the sponsors created the company ATE VIII Transmissora de Energia S.A. In July 2012, Abengoa Brasil transferred 50% of its shares in ATE VIII Transmissora to Empresa Brasileira de Desenvolvimento e Participacoes Ltda. The sponsor committed to invest US$ 20.5 million (BRL 48.3 million) in the transmission line. Environmental clearance was awarded in March 2012, and the construction works commenced in late 2012. Commercial operation began in January 2014. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.