Odoya Transmissora de Energia

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In November 2013, the Spanish company Cymi Holding S.A. (Grupo ACS) was awarded the contract to build and operate the 301-km transmission lines connecting Sapeacu - Morro do Chapeu II, Juazeiro da Bahia II - Juazeiro da Bahia III; and the substations SE Morro do Chapéu II and Juazeiro da Bahia III, all located at the state of Bahia. Besides Cymi, two other bidders took part in the contest: Transmissora Alianca de Energia Eletrica; and Alupar Investimentos. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Cymi presented the lowest offer, a total value of US$ 19.4 million (BRL 45.6 million), 36.09% below the ceiling set by the regulatory agency. The 30-year contract was signed in September 2014, and the sponsors created the company Odoya Transmissora de Energia S.A. to lead the project. The sponsor committed to invest US$ 174.3 million (BRL 600.9 million) in the project. In May 2016, the sponsor was granted a US$ 18.6 million (BRL 65 million) loan from the Brazilian bank Itau/Unibanco. Information on additional financing was not available, but, as of January 2017, the construction of the transmission line connecting Juazeiro da Bahia II to Juazeiro da Bahia III was concluded, as well as the Juazeiro da Bahia III substation. In June 2016, Cymi sold 50% of its shares in the project company to the Canadian investment fund Brookfield. 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.