Linha Verde Transmissora de Energia

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In May 2009, Consorcio Porto Velho-Jauru, an association of the state-owned Eletrobras (49%), CTEEP (25,5%) and Abengoa (25,5%), was awarded in a competitive bidding process the contract to build and operate 987-km of transmission located in the states of Mato Grosso and Rondonia. Besides Consorcio Porto Velho- Jauru, four other companies took part in the contest, though one participated in the final stage of the process: Alupar Investimentos. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Jauru presented the lowest offer, a value of US$ 21.3 million (BRL 42.6 million), 15.4% below the ceiling set by the regulatory agency. The contract was signed in November 2009, and the sponsors created the company Linha Verde Transmissora de Energia to lead the project during the 30-year contract period. In May 2010, Abengoa acquired the shares of CTEEP in the project company. The sponsor committed to invest US$ 190 million (BRL 380 million) in the transmission line. The construction works commenced in April 2010, but financial closure was only achieved in February 2011, when the sponsor was granted a US$ 96.2 million (BRL 157 million) loan from FDA (Amazonia Development Fund). The remaining cost was set to be financed with the sponsors’ internal resources. Construction works are expected to be concluded by the end of 2011.