Empresa Regional de Transmissao de Energia S.A. (ERTE)

active

In August 2002, Consorcio SA Vila do Conde (a partnership of Schahin Engenharia Ltda and Alusa’s subsidiary Companhia Tecnica de Engenharia Eletrica) was awarded in a competitive bidding process organized by the regulatory agency ANEEL the 30-year contract to build and operate a 155- km transmission line located in the state of Para (Vila do Conde-Santa Maria). Information on the other bidders was not available. The bidding criteria set by ANEEL was the lowest required annual revenue CONSÓRCIO SA - VILA DO CONDE presented the lowest offer, a total value of US$ 5.48 million (BRL 12.88 million), 0,10% below the ceiling set by the regulatory agency. The contract was signed in December 2002, and the sponsors created the company Empresa Regional de Transmissao de Energia S.A. (ERTE) to lead the project during the 30-year contract period. Over the years, the shareholding structure of ERTE changed and, as of 2009, the shareholders were Alusa (50,00%), state-owned Cemig (18,35%), American company MDU Resources International (13,30%) and Canadian company Brookfield (18,35%). The sponsor committed to invest US$ 26 million (BRL 80 million) in the transmission line. Financial closure was achieved in 2003, when the sponsor was granted a US$ 17.7 million (BRL 54.4 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Operations commenced in September 2004.