Interligacao Eletrica Sul

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In June 2008, CTEEP was awarded in a competitive bidding process the contract to build and operate 150-km of transmission line and two substations located in the states of Parana, Santa Catarina and Rio Grande do Sul. Besides CTEEP, twelve other companies took part in the contest: Spanish company Cobra Instalaciones y Servicios; state-owned Eletrosul; Brazilian Triunfo Participações; Schahin Engenharia; Spanish Cymi Holding; Terna Participacoes; Orteng Equipamentos e Sistemas; state-owned Copel Geracao e Transmissao; TBE Brasil; Alupar; Spanish Abengoa; and Elecnor Transmissao de Energia. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. CTEEP presented the lowest offer, a total value of US$ 3.6 million (BRL 6.6 million), 0.5% the ceiling set by the regulatory agency. The contract was signed in October 2008, and the sponsors created the company Interligacao Eletrica Sul to lead the project during the 30-year contract period. In August 2009, the shareholding structure was modified as follows: CTEEP (50.1%) and the Spanish company Cymi Holding S.A., a subsidiary of ACS Group (49.9%). The sponsor committed to invest US$ 20.1 million (BRL 36.8 million) in the transmission line. The construction works commenced in November 2008, but financial closure was only achieved in December 2010, when the sponsor was granted a US$ 10.28 million (BRL 18.1 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Construction works were expected to be concluded in 2011.