Caiua Transmissora de Energia

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In December 2011, the Brazilian state-owned company Copel (49%) and the Spanish company Elecnor (51%) were awarded in a competitive bidding process the contract to build and operate the 136-km transmission line connecting Umuarama-Guaira and Cascavel Oeste-Norte, located at the state of Parana. The project also included the construction of two new substations: Cascavel Norte ( 300 MVA) and Santa Quiteria (400 MVA). Two other companies took part in the contest: ABENGOA CONCESSOES BRASIL HOLDING S/ A; and ALUPAR INVESTIMENTO S/A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Copel and Elecnor presented the lowest offer, a total value of US$ 10.8 million (BRL 17.7 million), 23% below the ceiling set by the regulatory agency. The contract was signed in May 2012, and the sponsor created the company Caiua Transmissora de Energia S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 91.6 million (BRL 215.7 million) in the transmission line. In December 2013, Caiua Transmissora was awarded a US$ 35.9 million (BRL 84.6) million loan from the state-owned bank BNDES. Environmental clearance was awarded in early 2013. Construction works commenced in April 2013 and were expected to be concluded by May 2014. The project 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. In January 2014, Brazilian private bank Bradesco approved a US$ 17.9 million (BRL 42 million) loan to the company. Commercial operations commenced in July 2014.