Piracicaba Substation

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In December 2012, the Brazilian company CPFL Geracao de Energia S.A., a subsidiary of CPFL Energia S.A., was awarded in a competitive bidding process the contract to build and operate one substation located in the state of Sao Paulo. The substation named SE Piracicaba was set to have a planned capacity of 440/138/13,8 kV. Besides CPFL Geração de Energia S.A., three other companies took part in the contest: the Spanish company Abengoa Concessoes Brasil S.A. ; Consorcio Santa Barbara; the Spanish company Cobra Instalaciones Y Servicios S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. CFPL presented the lowest offer, a total value of US$ 4.5 million (BRL 8.87 million), 39.42% below the ceiling set by the regulatory agency. The contract was signed in February 2013, and the sponsors created the company CPFL Transmissao Piracicaba S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 63.8 million (BRL 150 million) in the substation. In April 2014, CPFL Trasmissao Piracicaba issued US$ 29.8 million (BRL 70 million) in bonds to finance the project. Environmental clearance was awarded in March 2014, and the construction works commenced in April 2014. As of December 2014, operation were expected to commence in May 2015. 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 accelated depreciation methods of accounting for construction expenditures.