Pantanal Transmissao

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In July 2013, Consorcio Pantanal, a partnership of Cel Engenharia LTDA (51%) and the state-owned company Celg Geração e Transmissao S.A (49%), was awarded the contract to build and operate the Campo Grande II subestation (230/138 kV) located in the municipality of Campo Grande, state of Mato Grosso. Besides Consorcio Pantanal, only another bidder took part in the contest: Cobra Instalaciones Y Sevicios. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Pantanal presented the lowest offer, a total value of US$ 1.2 million (BRL 4.3 million), 5% below the ceiling set by the regulatory agency. The contract was signed in October 2013, and the sponsors created the company Pantanal Transmissao S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 13.6 million (BRL 50.3 million) in the project. The construction works started in January 2016 and were concluded in June 2016. 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.