IEMA Substations

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In November 2008, Consorcio Madeira Transmissao, an association of the state-owned companies Furnas (24.5%) and CHESF (24.5%) and the Brazilian private company CTEEP (51%), was awarded in a competitive bidding process the contract to build and operate two substations located in the states of Rondonia and Sao Paulo. Besides Consorcio Madeira Transmissao, another company took part in the contest: Consorcio TME TRANS (the Brazilian company Neoenergia, 34%; Alupar, 22%; the state-owned company CEMIG 22%; and Empresa Amazonense de Transmissao, 22%). The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Madeira Transmissao presented the lowest offer, a value of US$ 82.8 million (BRL 151.7 million), 9.99% below the ceiling set by the regulatory agency. The contract was signed in February 2009, and the sponsors created the company Interligacao Eletrica Madeira (IEMA) to lead the project during the 30-year contract period The sponsor committed to invest US$ 655 million (BRL 1.2 billion) in the substations. The construction works commenced in October 2009, but financial closure was only achieved in September 2010, when the sponsor was granted a US$ 61.7 million (BRL 108.7 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Commercial operations commenced in May 2014.