Norte-Sul II

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The transmission project comprised a 1,278 km, 500 kV line that was to transport 1,200 MW from the Imperatriz substation in the Brazil’s northeast state of Maranhao to the Samambaia substation in the Federal District. The project, comprising development, construction, erection, commissioning, operation, and maintenance, was designed to run in parallel to the existing north-south transmission line. The existing line, called North-South interconnection I, was a 1,279Km high-tension transmission line linking Brazil's main northern and southern power grids. The US$936 million project, built and operated by the Brazilian state-owned company Eletrobras, connected Brazil's North/Northeast grid to the South/Center-East/Southeast system creating a one interconnected system for most of the country (as of 2003 the states of Amazonas, Roraima, Acre, Amapa and Rondonia were still excluded). The first line connected the cities of Imperatriz in Maranhao state and Colinas and Miracema in Tocantins state. The North South interconnection II was expected to duplicate the transmission capacity between the North/Northeast and the South/Center-East/Southeast subsystems. The two projects were to share some access for inspection, maintenance, and limited operation. The project also included investment and improvement of the existing six substations in the Federal District and the states of Goias, Tocantins, and Maranhao. After construction completion, the line was expected to improve system reliability and reduce energy shortages and interruption. ANEEL, the Brazilian regulatory agency responsible for concessioning transmission lines, awarded the Novatrans Consortium (Camargo Correa and Civilia Engenharia) the concession for the lines on August 30, 2000. The concession contract was awarded for 28 years after the commercial operation date - thereby creating a combined 30 year contract (2 years for construction and 28 years thereafter). In February 2002, Enelpower, subsidiary of Italy’s state power company ENEL, assumed 90% ownership of Novatrans Energia. The remaining 10% was assumed by Brazilian engineering company Civilia Engenharia. In 2003, through a restructuring within ENEL group, the corporate control of Novatrans was transferred from Enelpower to Terna, another wholly-owned subsidiary of ENEL. In this operation, the control of Tranmissora Sudeste Nordeste (TSN) was also transferred from Enelpower to Terna. As of August 2003, Novatrans had implemented the first section of the line, connecting Samambaia substation, in the Federal District, to Serra da Mesa, in the State of Goias. Financial closure for the project was reached with the Inter-American Development Bank approved US$66 million to Novatrans Energia. In addition, Brazil’s national development bank, BNDES, provided US$133 million and the commercial bank ABN was expected to provide US$33 million. Total project investmemt was expected to be US$338 million. The project began to operate in April 2004. In November 2009, Cemig bought a state in Terna Participacoes, which held 100% of the shares of Novatrans Energia by that date. The name of the company changed from Terna Participacoes to Transmissora Alianca de Energia Eletrica S.A. (Taesa). The shareholders of Taesa are: FIP Coliseu (33.6%), Cemig (32,3%) and small local investors (34.1%). Need to add new sponsor name