Sao Joao Transmissora de Energia

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In May 2013, Consorcio Gilbues, a partnership of the Brazilian companies Engeglobal Construçoes LTDA (50%) and Bimetal Industria Metalurgica LTDA (50%) , was awarded the contract to build and operate a 408-km transmission line Gilbues II - Sao Joao do Piaui located at the state of Piaui. Besides Consorcio Gilbues, four other bidders took part in the contest: Consorcio Boi Bumba (Eletrosul, 24,5%, Copel, 24,5%, e Elecnor,51%), Cymi Holdings S.A, Abengoa Concessoes Brasil Holding S.A. and Isolux Energia e Participacoes S.A. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Guilbues presented the lowest offer, a total value of US$ 9.3 million (BRL 34.5 million), 23.17% below the ceiling set by the regulatory agency. The contract was signed in August 2013, and the sponsors created the company Sao Joao Transmissora de Energia S.A. to lead the project during the 30-year contract period. In November 2014, 60% of the shares in São João Transmissora de Energia S.A. was transferred to the Fundo de Investimento em Participaçoes Caixa Milao (FIP Caixa Milao, an investment fund controlled by the Brazilian group JBS). The other 40% of the shares remained with Bimetal Industria Metalurgica LTDA. The sponsor committed to invest US$ 73.4 million (BRL 271.7 million) in the project. The construction works started in March 2016 and were in advanced stages as of July 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.