Integracao Maranhense Transmissora de Energia

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In December 2011, the Brazilian state-owned company Copel (49%) and the Spanish company Elecnor (51%) were awarded in a competitive bidding process the contract to build and operate the 365-km transmission line connecting Acailandia - Miranda II, located at the state of Maranhao. Five other companies took part in the contest: ?? ABENGOA CONCESSOES BRASIL HOLDING S/ A; ALUPAR INVESTIMENTO S/A; CONSORCIO ACAILANDIA ; CONSORCIO ATLANTICO NORDESTE; and CONSORCIO NORDESTE TRANSMISSAO. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Copel and Elecnor presented the lowest offer, a total value of US$ 16.3 million (BRL 26.6 million), 40% below the ceiling set by the regulatory agency. The contract was signed in May 2012, and the sponsors created the company Integracao Maranhense Transmissora de Energia S.A. (IMTE) to lead the project during the 30-year contract period. The sponsor committed to invest US$ 139.8 million (BRL 329 million) in the transmission line. In December 2013, Caiua Transmissora was awarded a US$ 60.4 million (BRL 142.2 million) million loan from the state-owned bank BNDES. Environmental clearance was awarded in early 2013. Construction works commenced in April 2013 and were expected to be concluded by September 2014. 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 accelated depreciation methods of accounting for construction expenditures. In January 2014, the sponsors were granted a US$ 30.2 million (BRL 71 million) 1-year term loan, provided by Banco Bradesco. Commercial operations commenced in December 2014.