Sao Pedro Transmissora de Energia

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In July 2013, Consorcio Big Energy, a partnership of FIP Caixa Milao - Grupo JBS (60%), Bimetal Energia (35%) and Geoenergia Soluçoes de Sistemas de Energia (5%), was awarded the contract to build and operate a 295-km transmission line Gilbues II – SE Bom Jesus II – SE Eliseu Martins located at the state of Piaui. Besides Consorcio Big Energy, three other bidders took part in the contest: Consorcio Linhas do Nordeste, Cymi Holdings S.A, Transmissora Alianca de Energia. The bidding criteria set by the regulatory agency ANEEL was the lowest required annual revenue. Consorcio Big Energy presented the lowest offer, a total value of US$ 8.5 million (BRL 31.6 million), 13.5% below the ceiling set by the regulatory agency. The contract was signed in October 2013, and the sponsors created the company Sao Pedro Transmissora de Energia S.A. to lead the project during the 30-year contract period. The sponsor committed to invest US$ 186.7 million (BRL 691.3 million) in the project. The construction works started in February 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.