Serra da Mesa Transmissora de Energia S.A.

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MIGA has issued a guarantee of € 20.9 million ($33 million equivalent) to Cobra Instalaciones y Servicios S.A. of Spain to cover its equity investment in the Serra da Mesa Transmissora de Energia project in Brazil. The coverage is for a period of up to 15 years against the risks of transfer restriction and breach of contract. The project consists of the construction, operation, and maintenance of a total of 675 kilometers of 500 kV transmission lines along the north-south axis of the country. The new lines will stretch from the Serra da Mesa hydropower plant on Rio Tocantins in the State of Goiás to the Embrocação hydropower plant on the Rio Paranaíba. The project also includes the construction of two new substations, one near the municipality of Luziâna in the State of Goiás, and the other near the Municipality of Paracatú in the State of Minas Gerais. 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 it permits regions of the country to continue receiving energy even if there is a dry spell. A more consistent energy source will help ensure that Brazil continues on a path of economic growth. 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 help the country become more competitive by improving its infrastructure.

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