Cuiaba – Itumbiara Transmission Line

active

In October 2004, the Agencia Nacional de Energia Electrica (ANEEL –Brazil’s energy regulatory agency) awarded a 30 year contract to build, operate and maintain an 811 km transmission line of 500 kV and two power substations between Cuiaba in Mato Grasso and Intumbiara in Minas Gerais to the Spanish firm Elecnor. Elecnor won the bid in an auction in September 2004 by offering 40% below the maximum annual revenues. It offered to pay US$59.3 million (164.6 million real) to the Brazilian government for the concession. In December 2006, BNDES, the Brazilian development bank, financed US $224 million for the construction, operation and maintenance of the transmission line. Total investment requirements were estimated at US$361 million (788 million real). Indirect financing was provided by three different groups of private banks (Banco Bradesco SA, Banco Votorantim SA, Banco Santander Brasil SA and Banco BNP Paribas Brasil SA). At this time, BNDES also financed #4352 Vila Do Conde Transmissora de Energia Transmission Line and #4353 Porto Primavera - Dourados – Imbirissu. MIGA also issued guarantees of $35.4 million to Cobra Instalaciones y Servicios SA. (Cobra) of Spain to cover its $39.2 million equity. The coverage is for fifteen years against the risk of breach of contract, and up to 10 years against the risk of transfer restriction. In March 2010, the shareholding structure was again modified when a Chinese state – owned company, SGID, acquired Itumbiara Transmissora de Energia and other transmission projects from Plena Transmissora de Energia (Isolux, 33,3%; Elecnor, 33,3%; Cobra Instalaciones y Servicios, 33,3%), which held 100% of the shares of the project company at the time the transaction took place. SGID invested US$ 1.72 billion (BRL 3.1 billion) in the acquisition of Plena Transmissora de Energia.