Atlantico - Concessionaria de Transmissao de Energia do Brasil

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In June 2010, Consorcio Atlantico, a partnership of the Brazilian companies ARM TELECOMUNICACOES (40%), ARM ENERGIA (20%) and the Portuguese company CME - CONSTRUCAO (40%), was awarded in a competitive bidding process the contract to build and operate 79-km of transmission lines (Integradora Sossego - Xinguara) and two substations (Carajas and Xinguara) located in the state of Para. The transmission line was set to link the cities of Sossego and Xinguara. Besides Consorcio Atlantico, three other companies took part in the contest: the Brazilian state-owned company Eletronorte; the Brazilian company FR Incorporadora Ltda; and the Brazilian company ATP Engenharia Ltda. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Atlantico presented the lowest offer, a total value of US$ 3.6 million (BRL 6.42 million), 16.84% below the ceiling set by the regulatory agency. The contract was signed in December 2010, and the sponsors created the company Atlantico - Concessionaria de Transmissao de Energia do Brasil S.A. to lead the project during the 30-year contract period. In June 2011, CME - Construcao acquired the shares of ARM Telecomunicacoes and ARM Energia in the project company. The sponsor committed to invest US$ 35.1 million (BRL 68.5 million) in the transmission line. In December 2012, the sponsor was granted a US$ 21.7 million (BRL 42.3 million) loan from state-owned bank BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Enviromental clearence was awarded in December 2011. As of March 2013, construction works were underway. Operation was set to commence in May 2013. 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 accelated depreciation methods of accounting for construction expenditures.