Empresa de Transmissao do Espirito Santo

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In November 2006, Cia. Tecnica de Engenharia Eletrica (a subsidiary of the Brazilian company Alusa) was awarded in a competitive bidding process organized by the regulatory agency ANEEL the 30-year contract to build and operate a 107- km transmission line located in the state of Espirito Santo (Mascarenhas – Verona). Besides Cia. Tecnica de Engenharia Eletrica, eleven other companies took part in the contest: ESP - EMPRESA DE ENERGIA DE BOGOTA; CPFL ENERGIA; LINEAR PART. E INCORPORAÇÕES LTDA; CONSORCIO EDP – SCHAIN; CONTROL Y MONTAJES INDUSTRIALES; CONSÓRCIO EIP - P&B BRASIL; ABENGOA S.A.; ISA - INTERCONEXIÓN ELÉCTRICA S.A. E.S.P.; TERNA PARTICIPAÇÕES S.A.; CONSÓRCIO ESPIRITO SANTO; and ELECNOR S/A. The bidding criteria set by ANEEL was the lowest required annual revenue. Cia. Técnica de Engenharia Elétrica presented the lowest offer, a total value of US$ 2.17 million (BRL 4.75 million), 35.28% below the ceiling set by the regulatory agency. The contract was signed in April 2007, and the sponsors created the company Empresa de Transmissao do Espirito Santo S.A. to lead the project during the 30-year contract period. The sponsor committed US$ 31.7 million in the transmission line (BRL 58 million). Construction works commenced in April 2007, but financial closure was achieved in 2008, when the sponsor was granted a US$ 8.5 million (BRL 15.5 million) loan from Unibanco and a US$ 4.9 million (BRL 9 million) loan from Votorantim Bank. The remaining cost was set to be financed with the sponsors’ internal resources. Operation commenced in December 2008. In 2009, an additional investment of US$ 12.5 million (BRL 25 million) was channeled to the expansion of the Verona substation capacity. In May 2009, a US$ 13.85 million (BRL 27.7 million) loan was granted from the state-owned bank BNDES.