Riberao Preto Transmissora Energia Ltda

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Project Description This summary covers a €20.75 million equity investment from Cobra Concesiones Brasil S.L. (Cobra) in Spain in the Riberao Preto Transmissora Energia Ltda transmission line project in Brazil. Cobra has applied for a MIGA guarantee of up to €11.72 million for a period of up to 15 years against the risks of breach of contract and transfer restriction. The project consists of the construction and operation of a total of 407 km, 500 kV power transmission lines and the expansion of three substations at São Simão, Marimbondo, and Riberão Preto.  The lines will go through the States of Minas Gerais and São Paulo. Environmental Categorization The project is a Category B under MIGA's environmental review procedures. Click here to view the Environmental and Social Review Summary. Development Impact The project is expected to help alleviate the imbalance of electricity supply and demand caused by the geographic distance and climate difference across regions. Transmission lines in Brazil tend to cover large distances, resulting from the fact that most energy is produced in hydroelectric dams located far from major energy consumption centers. Interconnected transmission line systems allow for more consistent distribution of energy, as they  permit regions of the country to continue receiving energy even if there is a dry spell. The proposed project is in line with the World Bank's country partnership strategy for Brazil, one of the key objectives of which is to support the country's competitiveness and investment climate through improvements to infrastructure networks.

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