Companhia Transudeste de Transmissao

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In november 2004, Consórcio Sudeste de Minas (a partnership of CEMIG, 24,5%; Alusa, 41%; Furnas, 24,5%; and Orteng, 10%) was awarded in a competitive bidding process organized by the regulatory agency ANEEL the 30-year contract to build and operate a 140-km transmission line located in the states of Minas Gerais (Itutinga-Juiz de Fora). Besides Consórcio Sudeste de Minas, only Elecnor took part in the contest. The bidding criteria set by ANEEL was the lowest required annual revenue Consórcio Sudeste de Minas presented the lowest offer, a total value of US$ 3.99 million (BRL 11.7 million), 23.04% below the ceiling set by the regulatory agency. The contract was signed in March 2005, and the sponsors created the company Companhia Transudeste de Transmissão to lead the project during the contract period. The sponsor committed US$ 35.73 million (BRL 77.9 million) in the transmission line. The construction works commenced in 2005, but financial closure was only achieved in September 2006, when the sponsor was granted a US $ 22.2 million (BRL 48.4 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Operations commenced in 2007.