Interligaçao Eletrica Pinheiros

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In October 2008, Interligacao Eletrica Pinheiros S.A. a wholly-owned subsidiary of the brazilian company CTEEP, was awarded in a competitive bidding process the contract to build and operate three transmission lines and five substations located in the state of Sao Paulo. Besides CTEEP, other companies took part in the contest, like Cymi Holding and Cobra Instalaciones y Servicios, Orteng Equipamentos e Sistemas Ltda. and Consorcio TBE Brasil. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. CTEEP won three auctions (E,H,K): one for the transmission line and the other two for the substations. Auction E, for the transmission line, was won by the company with a US$ 3.4 million (BRL 6.4 million) revenue (32% below the ceiling), while auctions H and K were 51% and 27% below the ceiling. The contract was signed in October 2008, and the sponsors created the company Interligaçao Eletrica Pinheiros S.A. (IEPIN) to lead the project during the 30-year contract period. The sponsor committed to invest US$ 119.1 million (BRL 218 million) in the transmission line. The construction works commenced in October 2008, but financial closure was only achieved in December 2010, when the sponsor was granted a US$ 67.9 million (BRL 119.6 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Operations commenced in October 2012.