Goias Transmissao

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In June 2010, the Brazilian company Consorcio Goias Transmissao, was awarded in a competitive bidding process the contract to build and operate three transmission lines with 259 km in lenght and one substatio, all located in the state of Goias. Consorcio Goias is a joint venture of Furnas Centrais Eletricas (49%), J. Malucelli Construtora de Obras S.A. (31%), and Engevix Engenharia S.A. (20%). Besides Consorcio Goias , four other companies took part in the contest: COBRA INSTALACIONES Y SERVICIOS S.A.; ALUPAR INVESTIMENTO S.A.; TRANSMISSORA ALIANÇA DE ENERGIA ELETRICA S.A.; and CYMI HOLDING S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Goias presented the lowest offer, a total value of US$ 17.1 million (BRL 33.75 million), 32.44 % below the ceiling set by the regulatory agency. The contract was signed in November 2011, and the sponsors created the company Goias Transmissao S.A. The sponsor committed to invest US$ 180.6 million (BRL 356.67 million) in the electric complex. In May 2012 the sponsors were granted a US$ 49.6 million ( BRL 98 million) loan from state-owned bank BNDES. The remaining cost was set to financed with the sponsors' internal resources. Environmental clearance was awarded in December 2011. As of October 2012, construction works were underway, and operations were expected to commence in January 2013. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures. Commercial operations commenced in December 2013.