Marechal Rondon Transmissora de Energia

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In November 2013, the Chinese company State Grid Brazil Holding S.A. was awarded the contract to build and operate the substation Marechal Rondon, located at the states of Mato Grosso and Sao Paulo (440/138 kV in capacity). Besides State Grid Brazil, two other bidders took part in the contest: Consorcio Adamantina and Alupar Investimento S/A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. State Grid Brazil presented the lowest offer, a total value of US$ 4.9 million (BRL 11.6 million), 28% below the ceiling set by the regulatory agency. The contract was signed in January 2014, and the sponsors created the company Marechal Rondon Transmissora de Energia S.A to lead the project during the 30-year contract period. The sponsor committed to invest US$ 35.3 million (BRL 117.9 million) in the project. In October 2015, the state-owned bank BNDES approved a US$ 18.6 million (BRL 62.2 million) loan to finance the project. The remaining project cost was equity financed. 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 accelerated depreciation methods of accounting for construction expenditures. Construction works were concluded by the end of 2016.