Paranaiba Transmissora de Energia

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In December 2012, Consorcio Parnaiba Transmissora de Energia S.A., a partnership of the Chinese company State Grid Brazll Holding S.A. (51%) and the Brazilian state-owned companies Copel (24,5%) and Furnas (24,5%), was awarded the contract to build and operate the 967-km transmission line Barreiras II - Rio das Eguas - Luziania - Pirapora II, located at the states of Bahia, Goias e Minas Gerais (500 kV in capacity). Besides Consorcio Parnaíba, only another bidder took part in the contest: the Spanish company Abengoa. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Parnaíba presented the lowest offer, a total value of US$ 54.5 million (BRL 106.2 million), 5,56% below the ceiling set by the regulatory agency. The concession contract was signed in May 2013, and the sponsors created the company Parnaiba Transmissora de Energia S.A. to lead the project during the 30-year contract period. Consorcio Parnaíba committed to invest US$ 299.8 million (BRL 1 billion) in the project. The construction commenced in April 2015, and, as of December 2016, 99% of the construction works had been concluded. 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.