Expansion of the North - South III Interconexion

active

In November 2005, Consorcio Bandeirante, a partnership of LT Bandeirantes Empreendimentos (75%), Empa Serviços de Engenharia (15%) and Fuad Rassi (10%), was awarded in a competitive bidding process led by the regulatory agency ANEEL the contract to build and operate a 708-km transmission line and a substation located in the state of Minas Gerais (Emborcacao - Nova Ponte, Nova Ponte – Estreito, Nova Ponte – Itumbiara, Nova Ponte - Sao Gotardo, Sao Gotardo 2 - Bom Despacho). Besides Consorcio Bandeirante, seven other companies took part in the contest: COBRA INSTALACIONES Y SERVICIOS S.A., TRANSMISSORA SUDESTE NORDESTE S.A. - TSN, ABENGOA S.A., NEOENERGIA, CONSORCIO NOVA PONTE, ISA - INTERCONEXION ELECTRICA S.A. E.S.P., and ELECNOR S.A. The bidding criteria set by ANEEL was the lowest required annual revenue. Consorcio Bandeirante presented the lowest offer, a total value of US$ 22.7 million (BRL 55.2 million), 46.04% below the ceiling set by the regulatory agency. The contract was signed in April 2006, and the sponsors created the company LT Triangulo SA to lead the project during the 30-year contract period. In June 2006, the shareholding structure was modified when Consorcio Bandeirante sold LT Triangulo SA to Plena Transmissora, a joint venture of Elecnor SA, Cobra SA and Isoluz SA (each held 33.3% of the shares of Plena). In May 2010, Elecnor acquired the full ownership of the company. The sponsor committed to invest US$ 234.5 million (BRL 570 million) in the transmission line. The construction works commenced in November 2007, but financial closure was only achieved in October 2008, when the sponsor was granted a US$ 200 million (BRL 364,5 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Construction works were concluded in March 2009.